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The Rise of China

Twenty years ago, when China opened its door for economic reforms, no one could have image the effect it would have on China or the world. Today, she has the largest population, second largest defense budget, and is the world’s second largest economy. This allows China to challenge some of the most powerful countries, including the United States, for control of the international stage.

The leaders of China have spent time visiting other countries and leaders from other countries have frequently visited China; these include the United States, Japan and Canada. Her relationship with other countries has never been better. China has made it clear that she wants to build a peaceful and harmonious world. It is against her wish to use military force. Her focus now is to assist the poor developing countries and to develop a peaceful world.

China will continue to have an important impact on the world economy. The growth of China’s trade provides more affordable consumer goods. If China can adhere the rules of the World Trade Organization, it will offer numerous opportunities to foreign investors and traders. The country has $1.5 trillium worth of foreign currency, with a good portion in U.S. dollars. If China were to dump its U.S. dollars, it would definitely hurt the United States, and this is one of the important reasons that the world’s perception of China as a major power is growing. Cheap Chinese exports have kept inflation low and the purchase of American treasury bonds has helped the U.S. to finance her debts. This also allows China to invest heavily in the financial and energy sectors around the world. The Olympics this year will put China on the international stage and everyone is longing to see the performance of China as the host of the Games.

As China continues to grow in her economic and military power, do you think she will become a threat to the world or will China get along with other countries? What are the positive and negative implications of the rise of China?