*A New World Economic Order Changing Regional Dynamics*
BY Samreen Fatima
In a world that advances by the economic ascendancy, we see China endeavouring to become a nation that commands great power and influence in Asia.
As the global power is in the making, the world seems to be shifting axis towards a more open China.
A country that has Confucianism at its baseline and closely held power structure at apex-repulsed the idea of Western democracy and charted it’s own course, under the influential Deng Xiaoping. Deng Xiaoping reforms were for economic liberalisation of China, which ultimately made it the chief beneficiary of the open market an-economic growth of china free trade drift. However, it never gave way to external constraints or influence The CCP’s hold in China is stronger than ever, with country’s growth maintained at an average of 9.8% in the last 30 years.
Eversince China acquired a more outward oriented strategy it has been flexing its muscles all across Asia-Pacific, it even is looking forward shift its manufacturing units in other countries too. China in its landmark move planned to girdle the globe with its all-encompassing Belt and Road initiative, the biggest infrastructure program in history that will enfold the century often called Asian century. The initiative is being seen as historic move to become a greatest geopolitical power on the planet.
With the economic, political and military expansion of the hegemony in Asia far and wide, neighbouring countries acknowledge their strategic concerns extend their support to China. It is time to re-orient the thinking and look at China’s new profile carefully as to how it will affect them, also they need to be consulting each other to see how they can collectively improve relations with China and make sure that the Chinese leadership goes for cooperative framework with other Asian countries. However there has been widespread fear of getting eclipsed by a bigger nation. Will there be a balance in power structures? Will extension of Chinese power be used in peaceful manner? The questions recall a need to re-calibrate the ties with China bring about some serious alignments.
The layout of BRI was announced on September 6 2013, the China-Pakistan leg named as Cpec (China Pakistan Economic Corridor), being the Flagship project out of the 6 proposed economic corridors. A complete re- architecture of Pakistan’s infrastructure and economy which will be pivotal for China’s ambitions of greater strategic and economic influence in the region. Gwader being the nucleus of Cpec, in Arabian sea is a deep water port with a potential capacity of 300-400 million tons of cargo per year.Central Asia. The Gwader-Khashgar Corridor gives China a foothold in Arabian sea, the port which is strategically located to provide easy access to Arab waters is jointly developed by both nations, is linked to the Karakoram Highway which was built by China. which would reduce the distance from the nearest seaport to the land-locked Xinjiang province by 200 km.China and Pakistan are also the founding members of AIIB, a regional investment bank which is funding this megaproject.
It should be noted that US had serious reservations about AIIB at its formation in January 2016, despite the stalwart alliance with US, Germany and France joined and various joined later on. Chinese Yuan also joined IMFs special drawing rights (SDR) basket, the fifth in line after US dollar, Euro, Yen, British pound.
It carefully engineered a way to self-sufficiency and successfully and getting other strong economies on board.
According to a report by Forbes China’s dependency ratio for retires could rise as High as 44% by 2050.
According to the documents released by Chinese state that it aims to become a developed nation by 2050,before they start ageing.
They aim to double their gdp by 2030 and double it again by 2050. China envisages to become a 25 to 30 trillion economy. To achieve that it needs new markets, new energy links to Central Asia to cater to its needs.
The world is witnessing an evolving economic order that’s based on infrastructure, mutual co-ordination, inclusive policy rather than protectionism, treaties or alliances. This initiative integrates Asia into a well-knitted, well co-ordinated and prosperous region accounting for almost 2/3rd of worlds GDP.
The outcomes of transborder project will be enormous in terms of economic growth, social transformation, infrastructure development, culture permeation. And most importantly a new power centre in Asia with its own identity and ideology will come on the international scene.
A new world economic order that casts aside the zero-sum game and gunboat diplomacy and embraces a system where everyone is economically interdependent on each other.
The regional dynamics is changing every day, and it changes for the good, a better Asia and a better world.
Samreen Fatima studied Engineering, her hobby is writing, chiefly focusing on Geo-politics and International Relations.