First, it joins the WTO. Then, it begins internationalizing it’s currency. Now, it creates an alternative to the Asian Development Bank (ADB) with capital equal to two thirds of the ADB’s and half of that of the World Bank.
Grassy-Knollists would see a pattern here. China is clearly engaged in a long-term bid to displace the U.S., and it’s partners, and set itself up as the economic hegemon of the 21st-century; or is it?
In the paper highlighted this week Chien Huei Wu from Acadmia Sinica at the Institute of European and American Studies (based in Taipei) looks more closely at each of the above developments and concludes that China is not trying to take Bretton-Woods apart.
In fact, he concludes, China benefits greatly from the current world economic order and can progress it’s interests both at home and abroad more successfully by partnering with established global institutions rather than trying to carve out a unique China-centric path.
Phew! So that’s all right then; assuming he’s correct of course….
You can access the paper in full via this link Is China Remaking Bretton Woods?
Happy Sunday.