- 22 Apr 2009 17:07
#1881817
By HoniSoit
Whilst the attention of the world has been focused on the financial crisis and the deepening of recession, China has been ‘quietly’ expanding its influence beyond its frontier both out of necessity and to seize the opportunities created by the world recession.
On the economic front, in my recent article on the geopolitics of financial crisis I have noted the increasingly assertive attitude of the Chinese government when it comes to international financial and economic issues. This includes the calling of a basket of reserve currencies to replace the dollar which is supported by Russia, Europe and an expert UN panel; as well as the call to boost China’s voting rights in the IMF. In addition, the US government has lately softened its previously strong criticism about China’s manipulation of its currency. The warning by the Premier Wen Jiabao about the adverse impact of US’s fiscal policy on China’s dollar assets is another such example.
But more importantly, China is taking advantage of the cheaper assert prices by embarking on a multi-billion-dollar international buying spree – often investing in resources companies - through its sovereign wealth fund and national social security fund which are financed by China’s enormous dollar reserve. Furthermore, China has signed multiple deals in the past few years with countries in the Middle East, Latin American and Africa, potentially challenging established US and European interests in these regions. More recently, China has agreed to make loans to Kazakhstan and buy into a major oilfield as the Central Asian country is struggling with its economy, competing for resources with United States, Europe and Russia - not to mention China has invested in the resources sectors in Russia itself.
On the military front, the annual double digit growth of China’s military spending has been highly publicised in the media. While the spending may still be justified as merely upgrading and modernising its military, the more recent participation in the anti-piracy navy missions in the Gulf of Aden since late last year clearly points toward a more expansionist orientation. It is unlikely China is going to engage in any war any time soon, and the main purpose of the expansion of its navy which China recently announced is to safeguard the sea lanes for its exports and energy imports consequent on the expansion of China’s trade reaching far beyond its border. However, one may still point to the recent incident where the Chinese navy reportedly harassed US surveillance ships in the South China Sea, signaling a more assertive position.
While the rise of China may diminish the extent to which the great powers exercise their domination globally, creating some breathing space for third-world developing countries to pursue a more independent path, it could also intensify international conflicts – not to forget China’s international behaviors are far from benevolent, exploiting the resources of the same third-world countries. Thus we need to be alert as socialists, not only to what the US or Europe do, but also to the creeping imperialism practiced by China.
Whilst the attention of the world has been focused on the financial crisis and the deepening of recession, China has been ‘quietly’ expanding its influence beyond its frontier both out of necessity and to seize the opportunities created by the world recession.
On the economic front, in my recent article on the geopolitics of financial crisis I have noted the increasingly assertive attitude of the Chinese government when it comes to international financial and economic issues. This includes the calling of a basket of reserve currencies to replace the dollar which is supported by Russia, Europe and an expert UN panel; as well as the call to boost China’s voting rights in the IMF. In addition, the US government has lately softened its previously strong criticism about China’s manipulation of its currency. The warning by the Premier Wen Jiabao about the adverse impact of US’s fiscal policy on China’s dollar assets is another such example.
But more importantly, China is taking advantage of the cheaper assert prices by embarking on a multi-billion-dollar international buying spree – often investing in resources companies - through its sovereign wealth fund and national social security fund which are financed by China’s enormous dollar reserve. Furthermore, China has signed multiple deals in the past few years with countries in the Middle East, Latin American and Africa, potentially challenging established US and European interests in these regions. More recently, China has agreed to make loans to Kazakhstan and buy into a major oilfield as the Central Asian country is struggling with its economy, competing for resources with United States, Europe and Russia - not to mention China has invested in the resources sectors in Russia itself.
On the military front, the annual double digit growth of China’s military spending has been highly publicised in the media. While the spending may still be justified as merely upgrading and modernising its military, the more recent participation in the anti-piracy navy missions in the Gulf of Aden since late last year clearly points toward a more expansionist orientation. It is unlikely China is going to engage in any war any time soon, and the main purpose of the expansion of its navy which China recently announced is to safeguard the sea lanes for its exports and energy imports consequent on the expansion of China’s trade reaching far beyond its border. However, one may still point to the recent incident where the Chinese navy reportedly harassed US surveillance ships in the South China Sea, signaling a more assertive position.
While the rise of China may diminish the extent to which the great powers exercise their domination globally, creating some breathing space for third-world developing countries to pursue a more independent path, it could also intensify international conflicts – not to forget China’s international behaviors are far from benevolent, exploiting the resources of the same third-world countries. Thus we need to be alert as socialists, not only to what the US or Europe do, but also to the creeping imperialism practiced by China.
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