Introduction
China has been a remarkable case of development, as the state has become very influential and important on the global level. To fund economic development, China has acquired a tremendous dept, which, if not repaid, can harm the global economy. This paper aims to use China as a case study to examine the impact of China on globalization and international security.
The impact of China
Mainly, the impact that China has on globalization and global development is connected to the monetary system. According to Scott and Sam (2016), “China’s total debt is now about two and a half times the size of its economy” (para. 5). This is a concern because a default of this state, considering the modern-day interconnection of international financial systems, will inevitably affect Europe and the United States. The majority of this debt is associated with state-owned enterprises, which reflects the nature of the country’s economic system. However, this indicates a possible solution since these organizations own assets, which, in case of necessity, can be sold to repay the debt.
Within the globalized world, China is a relatively closed state, which is associated with the communist-centered political approach. This can mean that the overall impact of this country on global security is limited. Tucker (2016) argues that the Chinese government has to continue the policy of centralizing power to maintain control over the state that faces economic struggles. According to Scott and Sam (2016), in terms of the financial security of the global economy, China’s increasing debt is a threat. However, the economy of this state and the political system make China a relatively closed country, regarding its financial system. Hence, the overall impact on the global system is less significant.
The global economy changes the security implications of China. In regards to the United States, the recent conflict between the two reflects the nature of rivalry for regional and international impact between the two countries (Bloomberg, 2020). Historically, China provided the United States with low-cost labor, helping both economies develop. Tucker (2016) also cited the United States – Taiwan relationship which worsened under Nixon’s presidency to facilitate the improvement of the relationship with China. However, it appears that this alliance is not beneficial for both parties as the United States aims to affect preferences that China receives through its World Trade Organization (WTO) membership (Bloomberg, 2020). This can seriously affect the state as it is highly dependant on foreign trade.
From a military perspective, China aims to gain more regional control. The central aspect of this is an aspiration to inawe Taiwan and establish Beijing-led administration there (Tucker, 2016). Notably, the United States is involved in this conflict because it sells weapons to Taiwan. Currently, it is unclear what the military capability of China regarding this aspiration is. From the energy perceptive, China is dependant on WTO’s agreements regarding energy supply, which support its enterprises to use large quantities of imported coal (Murphy, 2019).
Conclusion
Overall, China affects globalization and global security by acquiring substantial debt to fund its development, which can be considered a threat to international financial systems. However, based on the explored evidence, one can point out two factors – the closed nature of the economy and the assets that can be used to repay the loans. Therefore, the impact that China has on globalization is reflected in the dependency on global trade and debt.
References
Bloomberg. 2020. “US Narrows WTO Subsidy List, Making It Easier To Target China.” South China Morning Post.
Murphy, Katharine. 2019. “Simon Birmingham Says Threat Of New US Tariffs On China May Breach WTO Rules.” The Guardian.
Scott, Malcolm, and Sam, Cedric. 2016. “China’s Growing Debt Problem Isn’t Quite What It Seems.” Bloomberg. Web.
Tucker, William. 2016. “Does China Have A Superpower Delusion?.” Homeland Security. Web.