China's Economic Initiatives and Global Influence: An Essay Analysis

This essay examines the extent of China's reemergence as a global power, focusing on its economic initiatives and their impact on world politics and economics. It analyzes the role of the Asian Infrastructure Investment Bank (AIIB) and the Belt and Road Initiative in expanding China's influence. The essay highlights China's economic growth, productive capacity, and global economic influence, while also comparing China's economic and political influence to that of the United States. It also discusses the ongoing trade war between the US and China, and the potential impact of the AIIB member states backing China. The essay concludes by asserting the undeniable international economic and political influence of China, and its role in reshaping the global landscape.

ECONOMICS
Students Name
Institution

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Introduction
Notably, the Chinese economy is the 2nd largest economy in the world.
Arguably, China has economic and political influence in the international order.
Whereas some nations consider the Chinese economy a fast growing economy some
countries recognise it as a superpower. The Chinese economy has earned its position
in international economic order through the Asian Infrastructure Investment Bank
which is based in China and headed by a Chinese chairman. Through the Asian
Infrastructure investment Bank, the Chinese government has provided loan facilities
and garnered ‘soft power’ status in global matters. Despite the success of the AIIB,
some views consider the United States of America as retaining its super power status
due to its unrivalled military capabilities. Currently, the Bank is considered more
successful than the World Bank hence the assertion that the Chinese possess global
economic and political influence.
Undoubtedly, the Chinese economy is considered the 2nd largest economy
after the United States hence asserting it’s position as an emerging global powerhouse
both politically and economically. Worth noting, China enjoys a massive productive
capacity, increased value and quality of goods and services and a 9 % economic
growth rate yearly thus supporting (Petras, 2018).Remarkably, the Asian infrastructure
Investment Bank to which China is a member bears the same rank as the World Bank
due to the multilateral nature of the bank further proof of the global and regional

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economic influence globally. Notably,the Asian infrastructure Bank is based in China
(Li-Wong, 2016). Further, the Asian Infrastructure Investment Bank holds a
permanent observer’s status at the United Nations general assembly is further proof of
a global economic and political influence on global issues.. Similar to the World
Bank, the AIIB has global membership. Specifically, Rwanda and Djibouti recently
joined the AIIB to which Australia, Germany, and Sweden are members.
Despite being a regional organ it has global functionality similar to the
World Bank thus making its impacts global (Xinhua, 2019).Notably, the Asian
infrastructure investment bank has identical functions to the World Bank. Similar to
the World Bank, the AIIB has been instrumental in the issuance of financial credit
facilities to global countries thus proof of economic dominance. According to David
Dollar, the World Bank is slow and risk-averse hence there is not much borrowing.
Also, the operations of the World Bank Board operations are considered costly to the
tune of 70$million annually (Pilling, 2015). Further proof of the Chinese economic
dominance is the fact that the Asian infrastructure investment Bank is illustrated by
the fact that the AIIB has the second largest global membership through which comes
economic dominance (Gutner 2018). According to some views, the ongoing trade war
between the United States and China, China might enjoy the backing of the AIIB
member states because China enjoys soft power following the formation of the AIIB
(Dasgupta, 2017). Undoutedly,the Chinese influence in economic matters has grown
over the years.
As at the end of the AIIB Testing period ,the bank has been hailed for

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achieving its loan target of $1.2 billion and it has been praised for effective
governance and legal frameworks, capital adequacy plus liquidity. This goes to show
the successful nature of the Chinese government through it’s chairman Jin Liqun.
Further, the Chinese rollout of the Belt and Road initiative is proof of its economic
and political persuasion in the global environment. Specifically, the Belt and Road
initiative involves 152 nations and organizations at the international levels across the
continents of Africa, Europe, the Middle East and Asia (Shullman, 2019). According
to Orange and Weiner, China enjoys global influence through “soft power”(Orange &
Weiner ).Through this “soft power” China is able to influence global political and
economic decisions without military persuasion hence influencing global decisions
and outcomes.Currently,china lacks military capacity as compared to the United
States.Through the AIIB ,the Chinese government is able to implement its economic
policies over a large scale of international countries thus an influential force.
Through the AIIB Chinese government has financed nine projects and
fulfilled its target as of the year 2017.As contrasted to the World Bank, the AIIB is
praised for low operation costs for the AIIB board, effective governance structures
and proper legal framework which have made the bank more popular and successful
as compared to multilateral banks of development. The success results of the Asian
development bank is an assertion of the Chinese global influence through its credit
financial resources of global countries projects. Through global membership, the
assertion of economic influence can be asserted. Worth noting, the chairman of the
AIIB is a Chinese national. Remarkably the bank is considered to be a multilateral

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development financial institution in the same status as the World Bank .Overall,the
bank has provided”soft power” for the Chinese government among other
countries.The fast rate of economic gorwoth of China makes it an unstoppable super
power economy.Despite lack of a superior military capability like the United States of
America, the Chinese has influenced foreign economic policies of various countries
without any military or war like aggression.
Despite the rise of the Chinese economy, the American economy is considered
supreme with regards to war capacity (Petras 2018). Arguably, the trade war between
the United States of America and China raises the assumption that the AIIB might not
be able to protect China from Trump's protectionist and trade war attacks (Dasgupta
2017). Arguably, this goes to show that China might never be able to overthrow the
U.S.A's largest economic and political influence. The Chinese economy is considered
an emerging super economy according to some reports. The fact that there is no
definite measure or definition of superpower makes it even difficult to categories
whether China is bigger than the United States. Based on an article by the World
Economic Forum, the United States of America is unrivalled in its ability to plan,
deploy and sustain warfare far from its borders across land, sea, and air(Zhou
2019).The fact that there is no specific criteria in deciding what a super economy
is,the Chinese economy is considered to be fast grwoin than any other economy in the
world.Further,the Chinese economic growth rate is considered to be on the same level
as the Americqan economy.

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Conclusion
Overall, the Chinese economic growth rate is among the fastest in the world.
Recent studies indicate the Chinese economy as the 2nd largest economy in the world
following the United States of America. However, other opinions are that the Chinese
economy is the largest in the World. All the same, the international economic and
political influence of the Chinese economy cannot be doubted. Through the
establishment and performance of the Asian Infrastructure investment bank, the
Chinese enjoy global influence in international economic matters and ‘soft power. The
permanent observer status of the Asian infrastructure and investment Bank at the
United Nations states assembly is proof of the Chinese political and economic
influence on global order. The successful performance of the AIIB under the Chinese
chairmanship is further proof of the emerging super power nature of the Chinese
economy. However, the United States of America still possesses an unrivalled global
military capability.

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References
Dasgupta S. (2017). AIIB Helps Silk Road Plan, But May Fail to Protect China
Against Trump. Retrieved from https://www.voanews.com/east-asia/aiib-helps-
silk-road-plan-may-fail-protect-china-against-trump
Gutner, T. (2018). AIIB: Is the Chinese-led Development Bank a Role Model?.
Retrieved from https://www.cfr.org/blog/aiib-chinese-led-development-bank-role-
model
Jun, F.(2017). Three major challenges AIIB must overcome. Retrieved from
http://www.chinadaily.com.cn/opinion/2017-07/05/content_29995949.htm
Li- Wong, S. (2016). China launches new AIIB development banks as power balance
shifts. Retrieved from https://www.reuters.com/article/us-asia-aiib-
investment/china-launches-new-aiib-development-bank-as-power-balance-
shifts-idUSKCN0UU03Y
Orange, E & Weiner, J.(2019).China Ascendant: ”Soft power” In an open global
order. Retrieved from https://medium.com/positive-returns/china-ascendant-soft-
power-in-an-open-global-order-b3f447a48021
Petras, J. (2018). China: Rise, fall and Re-Emergence as a Global Power. Retrieved
from https://www.globalresearch.ca/china-rise-fall-and-re-emergence-as-a-
global-power-2/29644
Pilling, P. (2015). A bank made in China and better than the western model Retrieved
from https://www.ft.com/content/14c9f302-0397-11e5-a70f-00144feabdc0

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Shullman, D.(2019). Protect the Party: China’s growing influence in the developing
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l
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