China's use of Economic Power and Trade Flashcards
To understand the FPI China uses to achieve its aims.
How is economic power used by China?
China is the world’s second largest economy, only behind the USA
- Annual growth between 6-8% (except 2020 and 2022)
- GDP in 2022 - almost 18 trillion
When was the belt and road initiative introduced?
Announced by Xi Jinping in 2013
What is the belt and road initiative?
Designed to make trade easier between states and China. The purpose is for China to build infrastructure to reroute global trade to and from China, to develop and reinforce China’s trade links with south-east Asian, African, central Asian and European states.
How many countries are involved in the belt and road initiative?
71 countries that account for half the world’s population. USD 1 trillion dollar investment
What Sri Lanka’s worries about the belt and road initiative?
Governments are beginning to rethink costs. Siri Lanks, where the government leased a port to Chinese company for 99 years after struggling to make repayments is cautionary
What are the debt trap diplomacy worries about the belt and road initiative?
Laos, Mongolia are the poorest regions in the area, and owe more than half of their foreign debt to China. China could demand control of the south China Sea or silence human rights violations as a response to writing off debt.
What are economic military risks about China’s belt and road initiative?
- Chinese expansionism on commercial presence may lead to expanded military presence, as seen in Djibouti in 2017.
- there are worries that ports and other transport infrastructure being built can be used for military purposes
- the initiative is enshrined in the CCP’s constitution, along with Xi’s power to continue for as long as he wants
How does China use trade agreements to improve its economic prosperity and regional relations?
in 2016, China signed a 13.5 billion dollar deal with the Philippines and a free trade agreement with Cambodia in 2020.
- This is expected to support China’s continued economic expansion, boosting bilateral trade to 10 billion by 2023
How does China use trade agreements to improve its economic prosperity and international standing in Nigeria?
in 2020, two-way trade agreements were almost $14 billion, with China’s exports to Africa making up almost $12 billion of this
- trade agreements with countries outside of the Asia-Pacific region enables China to enhance how it is perceived by the international community (idea of win-win cooperation through trade)
- Nigeria affirmed commitment to the One China policy in 2017
Explain PNGs position with China in relation to the BRI
Papua New Guinea (PNG) signed a MOU for the BRI, which China responded to with aid, building a six-lane highway, Freedom Boulevard, and repairs to the Gurney Alotau airport. Whilst this boosted PNG’s economic prosperity, its national security was put at risk. As of 2017, PNG owed $1.9 billion to China.
