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Over the past few decades, China has experienced significant economic growth, averaging nearly 9% growth of GDP per year since 1992. This transformation began through the dramatic end of Mao Zedong’s strict communist China, into its post-communist China originally under the leadership of Deng Xiaoping, who pioneered a new change of political thinking from values known as Mao Zedong Thought into a country that focused on prosperity and economic growth. In order to do this, in the late 1970’s, Deng Xiaoping adopted a number of policies, involving a mixture of market-oriented reforms, as well as encouraging privatisation (a dramatic change from the previously nationalised country) and opening China to foreign investment. Furthermore, the adoption of special economic zones (designated zones in a country that differ in economic regulations to other parts of the country) helped to create favourable conditions for businesses, leading to significant inflows of capital and technology as a result of China’s access to the global market. China has mainly focused on infrastructure development and education using a mixture of government spending and supply-side policies, as well as prioritising a large influence in the trade and manufacturing sectors. These priorities have clearly been effective, as China is now the largest exporting nation by a significant amount, with a yearly export of value of around. $3.59 trillion, having surpassed the US in 2009.
This rapid rise in exports has sparked an ongoing trade war between the US and China, where China is able to out-compete the USA for cheaper exports to other countries due to extensive subsidies, and private companies being exempt from import taxes. Starting in 2018 where Donald Trump began setting tariffs and other trade barriers on China in order to prevent what the US say are longstanding, unfair trade practices and intellectual property theft, stating these practices may have contributed towards the US trade deficit (despite this negative view, China actually brings multiple benefits to the US economy. China helps provide over 1 million jobs to US citizens, as well as being invested in more than $50 billion in US facilities). Unsurprisingly, China retaliated to these allegations and $34 billion worth of trade regulations, accusing the Trump administration of engaging in nationalist protectionism and imposing tariffs of their own of a similar value on US exports. Despite both nations increasing protectionism by imposing these trade restrictions, it is widely seen that the US has mainly failed from this trade war so far, as most economists predict that the USA’s trade deficit will remain roughly the same, as they are expected to increase imports from other countries, in a process known as trade dispersion. Despite this, Joe Biden has kept the tariffs in place.
Have a look at this analysis about how the US-China trade war has progressed
This trade war isn’t the only thing causing tension between the two countries. China’s alignment with Russia can be seen as a big threat to not only the USA, but the global economy as a whole. The two countries led by Valdimir Putin (Russia) and Xi Jinping (China) have an informal agreement to coordinate economics and diplomatic moves, as well as building up an alliance against the United States. Both leaders share a deep hostility to dissent, suspicion to western countries as well as a seemingly strong desire to gain tighter control over their own nations. In regards to the ongoing Russia-Ukraine war, China has continually refused to condemn the conflict, spread Russian propaganda and opposed issuing economic sanctions on Russia at the UN general assembly. This highlights China’s controversial view on some humanitarian issues, which align with Russia’s. China can also partially be blamed for the long continuation of the Ukraine-Russia conflict. Ukraine’s president Zelenskyy argued that China has the economic leverage to pressure Russia into withdrawing from the war, claiming that Russia would feel complete “economic isolation” without the Chinese market continuing trade with Russia, with 38% of Russia’s imports coming from China, having gained a monopoly over a whole range of Russia’s imported goods. Therefore, we can see the huge threat that China has on the global economy. I would argue that China has control over Russia, instead of the acclaimed “partnership”. Russia are reliant on China, and China seem to be equally averse to western countries, at least under the leadership of Xi Jinping, who seems to be gradually gaining power over China, having abolished the two-term limit that was implemented by China in order to prevent the dictatorship nation under Mao Zedong ever taking place again.
In regards to the United Nations , despite China’s contributions being bested only by the USA, China’s diplomats are beginning to show greater willingness to exercise their presence in the UN, being one of 5 countries with the veto power and being able to influence other nations. For example, China’s mass internment of Uighurs (a muslim ethnic minority) can be highlighted as an example of China’s power in the UN over other nations. This is because Karen Pierce (a British representative) issued a statement to give the UN unrestrained access to China's prison camps in the western region of Xinjiang. Despite this statement being signed by 22 other countries (including US), Chinese diplomats convinced dozens of authoritarian countries (mainly Muslim) to sign a counter-statement praising China’s controversial actions as an enlightened effort to fight terrorism and religious extremism.
Overall, we can see how China is an ever growing threat to the UN, as Xi Jinping evidently holds hostility to the USA and other UN members, and is rapidly gaining influence across China, having in 2018 been given permission to lead China for life.
Looking into the future it seems very unclear as to whether China’s influence will be beneficial to the global economy, or whether it will be hostile to western nations and coercive to developing nations under the increasingly dictatorial leadership of Xi Jinping.
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