What does it take for a country to be a global superpower economy? As per the Internet, it is basically defined as a state with a dominant position characterized by its extensive ability to exert influence or project power on a global scale. This is done through the combined means of economic, military, technological, political and cultural strength, as well as diplomatic and soft power influence. And yes, I think China ticks all the boxes! China’s economy has enjoyed decades of double-digit growth, thanks to its low-cost exports of machinery, equipment, and consumer products. As a result, China has become the world’s largest economy.
It has not always been a bed of roses for the most populous country in the world. Perhaps it would be nice to know a little bit of their history under its 3 different leaders since 1949.
So what is in store for China now? The whole world has experienced the most serious global public health emergency since the end of the 2nd World War. COVID-19 has infected the world, which originated in Wuhan, China. Xi Jinping’s idea of the New Normal, a strategy which he has adopted since 2013 when he came into power, has now changed. This is not just because of the pandemic but also other challenges the country is facing such as trade imbalance (more exports than imports); too much debt, which is fueled primarily by real estate investment and shadow banks; environmental issues as they produce 30% of the world’s carbon emissions; demographics — their one-child policy will pose a problem to their aging population, impacting their lack of workers in the future; human rights issues; growing income inequality between urban and rural economies; technology friction; the cultural genocide of its Uighur population in the Xinjang Autonomous region, and a whole lot more.
It’s still going to be a rough ride for China, I suppose. Xi Jinping has to carefully balance growth and debt plus manage its relations with the United States, which has somehow deteriorated steadily during Donald Trump’s presidency. China’s success over the past three decades had caused a trade war with the United States. But this could not continue and lead to a cold war. There has to be a way for these two countries to get along.
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