China: The New Leader of the World

This report discusses the rise of China as a global economic superpower and its potential to become the new leader in the world. It explores the impact of the US-China trade war and the challenges China faces in becoming a global leader. The report also highlights China's achievements in various industries and its efforts to reform and open up its economy. Overall, it provides a comprehensive analysis of whether China is able to hold the position as a new leader in the new market.

China new leader of new
world

Table of Contents
INTRODUCTION....................................................................................................................... 3
REFERENCES......................................................................................................................... 13
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INTRODUCTION
Recognizing that global engagement, it has been evaluated that
leaders of China have been working for countering the backlash against
internationalisation (Cai, 2018). They are also engaged to reconfirm that
their commitment should be continued to reform and opening up. But after
disputes with largest trade partners like US due to some restrictions,
business of China has much affected, that raises a questions on whether this
nation is able to hold the position of new leadership (Gewirtz, 2019).
However, the achievements of China are undeniable where it is considered
as the fastest-ever expanded nation that gives employment to more than
850 million people. This would help them in escaping from poverty and
earning a sustainable life. Along with this, high investment in infrastructure,
education, science and technology has developed the living standard. The
present report is going to make an argument on whether China is able to
hold the position as a new leader in new market. For this purpose, a number
of articles and statistical data has been taken to outline the key discussion
points that supported with evidence.
The biggest industries in China
China is considered as the largest economy of the world as per basis
on purchasing power parity. In 2017, this nation has a GDP (Gross Domestic
Product) of $23.2 trillion where in recent decades, economy of respective
country has recorded as the fastest growth rate as compared with other
countries with an annual average of ten percent that has been recorded over
the last 30 years (Yang, 2018). Along with this, China after Asian country
holds the second biggest importer of resources or good, but received a top
position in the list of biggest exporter of commodities as well, where it has
exported amounting to over $2.09 trillion in 2016. Manufacturing industries
contributed the major role in enhancing economy of China by exporting the
largest products across the territorial regions (Mowlana, 2018). To maintain
this position, the industries of China has also accounted for 46.8% of GDP,
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which is attributed to intense investment for expansion of major industries
(The Biggest Industries in China, 2018). Along with this, manufacturing
industry of this nation also has experienced the tremendous growth within
the past century, that raise country's position from being a small-scale player
to larger manufacturer in global manufacturing. Furthermore, as a testament
regardless with booming industry in domestic area, China also has used more
cement in the period of 2011 to 2013, as compared with cumulative
consumption of US in the entire 20th century (Miller, 2019) . The total output
in terms of manufacturing in China, which is equivalent to near about 19.8%
of total global production.
China is also the biggest producer of cement, steel as well as chemical
fertilizers at global level, where from among the 10 largest steel producers of
the world, 6 are established in China, having production of more than 683
million tons (Fitzgerald, 2018). Along with this, in automobile sector, China is
also counted as the third largest producer in the world after US and Japan,
with the annual export of being estimated over $70 billion. This automobile
sector also has experienced a sustainable growth over few decades where
contribution in economy development can be measured in terms of increased
output from 1.45 million units to near about 13.7 million units in 2009 as
compared in 1995. Manufactured products such as automobiles, locomotives,
ships, textiles, automobile and electronics etc. account for over 94.3% of
$2.09 trillion of China's total exports.
China Overview – World Bank Group
As China began to open up its efforts in economic development,
therefore, its GDP growth has increased by 10% every year, that has lifted
the millions of people to come out of poverty. Today, this nation as per World
Bank Group, is counted as an upper-middle-income nation that also consider
as the second largest economy in the world (Rabushka and Kress, 2019).
However, its per capita income as expected is still below the poverty line for
upper-middle-income of US$5.50 a day. China is also lag in human capital
and labour productivity, where income inequality has been improved but
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remains still as high (China Overview – World Bank Group, 2018). Apart from
high growth based on intensive resource manufacturing and exports has
been dramatically raised. But low-paid labour has led to social, economic and
environmental imbalances. For reducing such imbalances, could only be
possible by shifting the structure of economy to higher-end manufacturing
from low-end (Jørgensen, Law and King, 2018). Rapid economic growth of
China is also overstepped the pace of institutional development, where China
needs to ensure the sustainable and high-quality growth plan for institutional
and reform gaps (Lanteigne, 2019). Furthermore, role of this state also needs
to evolve as well as focus on providing the stable market expectations with a
clear and fair business environment. For this purpose, strengthening the
regulatory system as well as the rule of law for further support to market
system also essential that makes China able to become new leader at new
pace of world (Lee, 2018).
Rise of China as a global economic superpower
There are a number of aspects presents that depicts that China is risen
as a new global economic superpower, because its trade and investments
with global world, have been increased continuously. The Government of this
country has given top priority to innovation first, in its economic planning, by
developing a number of profile initiatives like “Made in China 2025”. This
plan has been announced in 2015 for upgrading and modernizing the
manufacturing industries. The purpose behind this plan is to become global
player in the field of manufacturing sectors. This nation has currently
celebrated its 70-year of transformation into economic superpower, where a
trade war with USA results in derailing its growth and drag its world economy
as well (Andrews-Speed and Zhang, 2018). From the perspective of markets,
it has estimated that economic value of China between $22 trillion to $37
trillion either be subtracted or added to global economy till 2040. The
evidence of this fact can be revealed from four main aspects – China is
continuously climbing up in ranks; Economical rise; Chinese leadership; and
Trade of China with rest of the nations. As per World Bank and Organisations
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for Economic Development and Cooperation, China has overtook the position
of Japan and receives as second-biggest economy in 2010 accounting for
nominal terms rather than inflation (Tuangratananon and et. al. 2019). China
has still sustained its position due to continuous rise in economy as shown by
below graph -
(Source: China adjusts to the new world order, 2019)
Similarly, it has gained the superpower among other nations except
USA, where one of the most powerful and prominent leaders is Deng
Xiaoping, whose leadership has kicked off a numerous reforms in the year
1978 which brought the nation out of its isolation (Economy, 2018). After the
efforts of this leader, growth of China has accelerated year by year that
increases at around ten percent. Deng Xiapong the second leader in the
Communist China, has provided the clear direction and steady hand with
political skill to make China as a global leader. He has spearheaded the
political reforms with an attempt to bring the stability and solidify support.
Strengthen the field of industry, agriculture, defense, science and
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technology, were first set forth goals by Deng Xiaoping. For accomplishment
of these goals, investments have been made on a number of innovations
with advancement of technology. These reformation based on four
modernization, have made China to gain second biggest position in 2010
over Japan, as represented in above graph.
(Source: Here are 4 charts that show China’s rise as a global economic
superpower, 2019)
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(Source: Here are 4 charts that show China’s rise as a global economic
superpower, 2019)
Massive network of factories which turned out the production from a
simple to mobile phone is considered as one of the major driver which raise
the economic of China (Katz, 2019). Entry into WTO in 2001 i.e. World Trade
Organisation has helped China to become largest trade and export
destination among thirty three nations.
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(Source: Here are 4 charts that show China’s rise as a global economic
superpower, 2019)
Similarly, in terms of dominance in trade, China from 2015 to 2017,
has become the largest source of foreign outbound direct investment also
(Jacobson, 2019). This would make respective firm able to become one of the
larger player within global investment flows.
What China makes a Superpower
Any nation is called superpower when it has the capacity for projecting
its dominating power as well as can influence the other countries for
increasing the trade (Chang and Ren, 2018). Therefore, to behold the
position as superpower, a country has to be economic, political, cultural and
military areas of power projection. According to Marc Champion and Adrain
Leung (2018), it has been evaluated that US is well known for its expensive
superpower, which includes cost of maintaining the large military, diplomatic
missions and more. It provides the support to foreign countries for added up,
therefore, if China is extended itself around the territorial boundaries then it
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will face heavier burden, due to drastically diminished relationship with
largest trade partners like USA (Manwaring, 2019).
Furthermore, it has been evaluated that people of China as the sheer
number of highly motivated labours are moving off the land. They shift into
the urban economy that considers as the secret for its extraordinary success
(Kim, 2018). But due to the implementation of “one-child policy,” source of
growth within China is likely to be disappeared soon. Because having the
approx. 1.4 billion population of China as per United Nations projections, is
likely to decline sharply. Similarly, in terms of military invasion, China has
been transformed after its last war, that has been fought against Vietnam in
year 1979 (Dittmer, 2018). It has now rearmed and either copied to develop
a number of missiles and stealth technologies, that makes China as a
superpower in 21st century. Along with this, it has spent a lot on defence as
Russia, but due to lack in carrier fleets with other equipments that are
required to project power at all corners of the globe, China is not in the
position to produce a top-and flight jet engine.
Impact of tariff hike on US-China trade war -
In 2017, it has been evaluated that the Trump Administration has
launched an investigation under Section 301 innovation and policies
regarding with intellectual property of China, which deemed harmful to
economic interests of US. This resulted into increased the tariffs by 25
percent on imports of Chinese products which are worth of over $250 billion.
In respond, China also has raised tariffs which are ranging from 5-25 percent
on US imported goods that are of $110 billion worth. As US has planned to
increase the tariffs on goods which are imported from China. Therefore, it has
resulted to trade dispute among these two biggest nations of the world,
where levy tariffs on trade or on billion of dollars has worth of each others'
goods. In this regard, the higher cost of trade war among China and US
would may prompt organisations to shift away from East-Asian supply chains
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(Fitzgerald, 2018). Along with this, trade war with China has also made US as
a one-sided winner. But with minimal damage at domestic areas, its China
not US has proved to be master in cope up from trade war (Miller, 2019).
Beijing is deploying a strategy of shrewdly calibrated counter-moves on the
tariff front that's minimizing damage to its economy, while the U.S. is using a
scorched earth, tax-everything-bigly approach that's forcing our
manufacturers, and consumers, to pay tens of billions of dollars more for
imported products and parts.
China is not ready to be a global leader
It has been evaluated that China in terms of military, invasion and
ideology is ready to take the position as a new leader (Why China isn't ready
to be a global leader, 2017). However, the imposed tariff rate and inward
shift of America it has been estimated that China do efforts a lot to become a
global leader by developing a real strengths for holding superpower position.
But it has been evaluated that a country cannot get success in becoming the
global position if it not fulfil the several conditions. It includes economic
power, that has been considered as the foundation of entire other conditions
like improvement in national security by military invasion. In this regard, a
country if has a strong economic condition with a wide domestic market then
it can behold the position as a global leader in terms of raw materials, high
production and finished goods (Yang, 2018). This would lead to grow the
economic dependence grows which is crucial for attainment of premier
economic power of the world. Thus, it has been identified that without a solid
market and enough economy, a nation may become a global leader for a
short span of time, but never for long. In context with China, apart from
forcing itself to gain leadership position in new dynamic world, this nation
has focused more development and improvement of own condition first. In
terms of military invasion, it refers to hard power as well as a pillar for
hegemony (Mowlana, 2018). If a country has good economic condition but
with weak military then it can't be considered as major powers. For example
– Song Dynasty in China has no hegemony without military strength, so,
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other hegemonic powers has won this place in battlefield. Third concept
includes social factors like ideology and values, where a nation can claim for
a leadership position with few military interventions but cannot sustained for
longer period. Similarly, a global leaders also required to provide the public
goods as per international system to its people (Gewirtz, 2019). In this
regard, US has a leading power that helped in creating and maintaining the
set of global institutions. This would make USA as the top most global leader
instead of China.
China's efforts to adjust as per New World Order
It has been evaluated that to become a new leader in today's global
world, leaders of China has been continuously working to counter the
benefits of international trade as well as cooperation. With increased
engagement of China to rest of the world, it has estimated that this would
help respective nation to generate the $22 to $37 trillion of value by 2040 to
global economy by 2040 (China adjusts to the new world order, 2019). Along
with this, China also seek to get more benefit from import growth i.e. neat
about $3 to $6 trillion; with liberalization of services as over $3 to $5 trillion.
In addition to this, globalization of financial markets also led China to gain $5
to $8 trillion and collaboration with other trade partners on providing the
global public goods will led to $3 to $6 trillion with flows of technology and
innovation to $8 to $12 trillion (Cai, 2018). Thus, all these efforts has
reflected that China can gain new leadership position in new world, but it has
major focus on developing the strength of military power and resolving the
trade disputes with USA and other partners.
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REFERENCES
Books and Journals
Andrews-Speed, P., & Zhang, S. (2018). China as a Low-Carbon Energy
Leader: Successes and Limitations. Journal of Asian Energy
Studies, 2(1), 1-9.
Cai, K. G. (2018). The one belt one road and the Asian infrastructure
investment bank: Beijing’s new strategy of geoeconomics and
geopolitics. Journal of Contemporary China, 27(114), 831-847.
Chang, J., & Ren, H. (2018). The powerful image and the imagination of
power: the ‘new visual turn’of the CPC’s propaganda strategy since its
18th National Congress in 2012. Asian Journal of
Communication, 28(1), 1-19.
Dittmer, L. (2018). China under reform. Routledge.
Economy, E. (2018). The third revolution: Xi Jinping and the new Chinese
state. Oxford University Press.
Fitzgerald, J. (2018). China in Xi's" New Era": Overstepping Down
Under. Journal of Democracy, 29(2), 59-67.
Gewirtz, J. (2019). The Futurists of Beijing: Alvin Toffler, Zhao Ziyang, and
China's “New Technological Revolution,” 1979–1991. The Journal of
Asian Studies, 78(1), 115-140.
Jacobson, D. (2019). Old nations, new world: conceptions of world order.
Routledge.
Jørgensen, M. T., Law, R., & King, B. E. (2018). Beyond the stereotypes:
Opportunities in China inbound tourism for second‐tier European
destinations. International Journal of Tourism Research, 20(4), 488-
497.
Katz, J. D. (Ed.). (2019). Japan's new world role. Routledge.
Kim, S. S. (2018). China and the world: Chinese foreign policy faces the new
millennium. Routledge.
Lanteigne, M. (2019). Chinese foreign policy: an introduction. Routledge.
Lee, K. F. (2018). AI superpowers: China, Silicon Valley, and the new world
order. Houghton Mifflin Harcourt.
Manwaring, M. G. (2019). Gray area phenomena: Confronting the new world
disorder. Routledge.
Miller, T. (2019). China's Asian dream: Empire building along the new silk
road. Zed Books Ltd..
Mowlana, H. (2018). Triumph of the Image: The Media's War in the Persian
Gulf, a Global Perspective. Routledge.
Rabushka, A., & Kress, M. (2019). The New China: Comparative Economic
Development in Mainland China, Taiwan, and Hong Kong. Routledge.
Tuangratananon, T. & et. al. (2019). China: leapfrogging to become a leader
in global health?. Journal of global health, 9(1).
Yang, R. (2018). The third delight: Internationalization of higher education in
China. Routledge.
Online
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The Biggest Industries in China. 2018. [Online] Available Through:
<https://www.worldatlas.com/articles/which-are-the-biggest-
industries-in-china.html>.
China Overview – World Bank Group. (2018). [Online] Available
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China adjusts to the new world order. (2019). [Online] Available Through:
<https://www.project-syndicate.org/commentary/china-can-resist-
trump-external-pressure-by-andrew-sheng-and-xiao-geng-2019-10>.
Here are 4 charts that show China’s rise as a global economic superpower.
(2019). [Online] Available
Through:<https://www.cnbc.com/2019/09/24/how-much-chinas-
economy-has-grown-over-the-last-70-years.html>.
US-China trade war: UN warns of 'massive' impact of tariff hike. (2019).
[Online] Available Through: <https://www.bbc.com/news/business-
47126114>.
Why China isn't ready to be a global leader. 2017. [Online] Available
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