This paper aims to discuss China’s role as a major player in the global economy and the impact China will continue to have on the global economy. This paper will offer a summary of two articles entitled, China Pushes for Bigger Role in Reshaping the World Economy and Singapore sees India, China Role Growing, which discusses China’s transformation into a dynamic private sector-led economy and its integration into the global economy. I will also offer my opinion on the future prospects of China’s rapid growing economy and trade expansion.
China’s Role in the World Economy
Over the past decades, the competitiveness of the United States economy has been outstanding because of its capacity for innovation, higher education system, market size in terms of labor and product markets, and flexible capital markets. These advantages have allowed U.S. industries to take a leadership role in the global economy, providing products and services demanded worldwide. However, the U.S. economic powerhouse faces expanded global competition. Economic liberalization throughout the world, skills upgrades in developing countries and massive technological advances mean that the United States faces expanded competition for jobs and investment. The United States’ overall competitive position in the world economy is threatened by uprising developing countries such as BRIC—Brazil, Russia, India, and China. This paper will focus particularly on China’s role in the world economy. At a time when the U.S. and other traditional economic powers are weakening, China’s economic power is strengthening, indicating that it will try to find a much more assertive role in shaping the future of the world financial order. China, after all, has one-fifth of the world’s population, or roughly twice the population of the European Union, the United States, and Japan plus a handful of other high income nations. China sees the global downturn...