Global China?

Where does China fit in globally? On the world stage, China accounts for approximately 20% of the world's population but only accounts for 6% of the world's Gross Domestic Product (GDP). Which ranks the per capita income 104th in the world. Internationally relations are increasingly being driven by economics and China continues to be a major player in the world's economy. China exports 70% of everything it makes. Because China is able to produce goods cheaply, the rest of the world is eager to consume them. For example, the average wage in China, including benefits is $1.25 USD, whereas in the United States it's somewhere around $16.00. Americans, eager to spend their $16.00, are happy to consume Chinese produced goods at their local WalMart. Walmart in the US makes a huge profit. Walmart in China is still operating at a loss. The Chinese people lack the means to purchase the things they make.

China's primary natural resource is its people. China imports raw materials from around the world. Land in China is so dessamated by pollution and overuse that it only provides 6% of the world's farmable land. 6% to feed 20% of the world's population increases China's dependence on the world's economy.

So, what does all of this mean for China's place as a world power? In terms of military potential, China possess the manpower, but lacks the technological and economic resources to be too great of a threat. China is seemingly aware of this and so they seem to want the world to become more economically dependent on China as a way to exert world power. China has opened up and welcomes world investment. China has worked very hard to secure this position and increasingly finds ways to maintain it. China's currency is valued against a grouping of Japanese yen, US Dollars and the EU's Euro. China continues to buy up world debt in terms of bonds. China is tying its future to that of the rest of the world and because of this, they have to be included.

How much of China's economy is secure is yet to be seen. Government run industry is disappearing and in some ways, that serves to weaken the Communist Party because people are increasingly less dependent on the government. Those who can make money in the world economy are comfortable and secure for the moment. Those reliant on government assistance lack a universal voice and are held in check by government censorship. Business is allowed to exploit Chinese resources, both its people and its environment. China's government does not seem willing to take a stand in this regard.

In an increasingly global economy, it will take global influence to change China. Global pressures are felt by all governments, including world powers. Thus far, China has been willing to sit back and welcome foreign money and in some ways increasing foreign influence (China in recent years has backed down from military threats against Taiwan due mostly to world opinion, at least in my opinion). China's economic reliance on the world makes them vulnerable to pressures from the world on global issues like the environment or military ventures; while at the same time, the world becomes increasingly dependent on China to furnish the goods for mass consumerism. In this way, China cannot be ignored as a world power. China can likely continue to be a power whether or not the communist party remains in power based solely on economic ties.



Many of the details of this entry came from : CIA.gov