The Future of Power in the Chinese Economy - Literature review Example

? The Future of Power Power is the capability to make people to conduct activities they do not actually intend to undertake. It can be measured using economic status, political status, military force, extent of industrialization and urbanization. The twenty first century has seen drastic changes in the world geo-political status with the rise of states such as India, Brazil and China. It is believed that the rise of these countries has led to the decline of power of the traditional power houses such as the United States of America. However, other sources have disapproved this argument terming it as inappropriate. They argue that the rise of other countries does not necessarily result into the decline of the previously powerful countries. They went ahead to state that no single country however powerful it may be, can rise without the help of the other countries. The emergence of technology has played a great role in the rise of power in several countries. For instance the internet has been of significant influence in empowering various countries. Through the internet the world politics can be conducted from anywhere in the world. Similarly, countries have been able to analyze the economic status and foreign policies of rival countries through the internet. (Lundestad 24) A group of economists recently projected the economy of China would surpass that of the United States of America come the year 2027. But Joseph Nye has refuted these claims arguing that the Chinese economy would require stability in its military force similar to that of the U.S before it can catch up. They state further that the Chinese economy is yet to face setbacks such as social challenges that could see it tumble. There are other factors in China that are also believed to be capable of causing stagnation in its economic growth. These include: the rising of the urban middle class, the one child policy, regional inequality, high level of rural poverty and an uprooted working class. Joseph Nye believes that these factors will always have the per capita income of America being superior to that of China. The rise of the Chinese economy has not gone down well with many American citizens with the recent research implicating that many American view China as a constant threat to their economic security and jobs. America has been viewed as using its role as a superpower to earn political stability, democracy and economic supremacy in the world stage. The United States has been involved in several activities including invading other in the name of eradicating international terrorism and promoting positive relations among countries. However, many countries have viewed this as an effort by America to enhance its power across the globe and refused to support the globe. (Lundestad 34) The growth of the Chinese economy has caused ripples across the world with many viewing China as a future power house on the world stage. China has experienced tremendous economic growth and diplomacy in the twenty first century which has been of huge significance in the entire East Asia region. This is due to the emergence of several new economic activities in the region resulting into industrialization and hence emergence of several urban centers. This has resulted into China acquiring more credibility and influence in handling world matters. Questions have risen as to whether China will join the world super powers or try to surpass them. Many analysts believe that as China gets more powerful, it will try to use its influence to change the policies used in the operations of the international system to favour its interests. This has been the trend by many of the reigning world super powers such the United States. The rise of China may cause tension in the world stage as the reigning super powers view as a constant security threat to their dominance across the globe. This is said to be as result of China’s rise from outside the established post World War II international order. The rapid growth in the economy of China is attributed to availability of cheap labour among many other factors. With cheap labour various companies are able to hire more workers thereby increasing their level of production. With the large number of varieties of products, the country is able to feed its large population and have surplus to offer as export. The cheap labour has also ensured lower costs of production for several firms enabling to sell their products at relatively lower prices and still make profits. This has given China an edge over its global competitors such as America and Germany. (Lundestad 47) The Communist Party that rules in China has played a big role in ensuring smooth operation in the labour market. It has ensured that workers are not exploited by their employers and that the workers do not take part in unnecessary strikes that would slow the development process. This has seen substantial growth in the production sector of China. The Communist Party has valued its local investors more than the foreign investors stating that China is of more importance to the foreign investors than they are to China. This has ensured that China is totally in charge in formulation and implementation of its policies with minimal interference from the foreigners. This encourages production among the locals as most of the policies tend to favour them. These policies have also ensured that most employment opportunities fall to the local even in foreign firms. This has helped to reduce the level of unemployment and the dependency ratio in China thereby improving the per capita income of the country. China has enacted policies which ensure that their economy is more dependent on the levels of investments and less on the levels of expenditure of its consumers. This was arrived at as it emerged that the workers enjoyed a relatively less amount of the national cake in China as compared to those in other developed nations. This is aimed at ensuring an increase in the salaries of workers with a slight reduction in the levels of profits earned by firms. (Lundestad 64) China boosts of the largest population in the entire world. This high level of population has brought with it other than the cheap source of labour, a ready market for the commodities locally. The ready market enables firm to produce continuously with little dependence on the foreign market. This has also significantly enhanced the growth of the Chinese economy. China also has a relatively cheaper source of inputs for its industries making the cost of production low enabling firms to sell products at lower both locally and in the international scene. The forces of demand and supply have made products from China more acceptable across the globe hence China acquiring higher levels of income from exports than the prevailing world super powers. This has seen many countries become more independent on products manufactured in China giving the country more influence on the global stage. The influence comes along power hence the emergence of the debate concerning the rise in power in China and its projected effects on the prevailing super power nations. China is also known for its dominance in modern technology and availability of cheaper skilled labour. This has seen efficiency in production process and production of commodities readily acceptable on the global market. The developed countries are hugely dependent on skilled labour from China as it is a relatively cheap source. This has made even the developed nations dependent on China in one way or another hence the huge influence China has acquired on the international system. (Lundestad 74) The United States is alleged to be worried about the continuous growth in the economy of China even as the U.S faces financial crisis. The gross domestic product of China is way below that of the United States but poses a threat as it is in a poll position to overtake that of Japan which is ranked to the United States. China has been a thorn in the flesh of the United States as it has significantly reduced their influence in the South East Asia since their emergence as a strong economy in the world. Furthermore, China has the ability to snatch the United States more of its allies with its more attractive incentives and subsidies. China has a program in place that would push their naval expansion to its peak in a span of between 10 to 15 years. This is aimed at improving their military and the United States of America are aware of these developments. This has been a constant threat to the U.S whish has put measures in place to ensure their dominance in world prevails stating that they are not a temporary power in Asia but a permanent one. The U.S has even tried to intimidate China through its involvement in trade with China’s rivals such as Taiwan. This tension has had adverse effects on the business relations between the two nationssssss as seen recently when a tariff restricting dumping of Chinese goods was imposed in Washington DC, America. In conclusion, there is a possibility that China may overtake the United States of America in dominance across the world in the long run. However, analysts such as Joseph Nye believe that this will be a tall order for China as their system of politics is of little legitimacy and that they will face a lot of obstacles in their transition process. (Lundestad 114) Work Cited Lundestad, Geir. The Rise and Decline of the American "Empire": Power and Its Limits in Comparative Perspective. New York: Oxford University Press, 2010. Read More