China taking the lead for globalization

At present, countries like the United States under Trump’s Presidency are adopting a more protectionist approach with the ‘America first’ policy. However, it seems as though China is gradually emerging as the leader of major markets. China’s GDP has increased fivefold since the 1990s while the ruling communist party strives to create more jobs in the country and raise the quality of economic growth.

China’s global influence

On May 12^th, 2017 it was confirmed by Chinese President Xi Jinping that a forum to promote China’s One Belt One Road (OBOR) initiative will be held for two days. The leaders of 28 nations would be participating while the western powers seem to be less enthusiastic about the deal and thus, only Italy would be participating of the seven industrialized nations (G7). The OBOR spans 65 countries which amounts to 60% of the world’s population. Thus, the program is seen as a threat by leading nations due to the growing Chinese influence.

The EU and the US in the past few months have accused China for taking over most of their market share in the electronic as well as steel industry. This led to President Trump labelling China as a ‘currency manipulator’ which he later withdrew. The EU also hiked anti-dumping import duties on steel products from China which continue to encroach a large share of the global steel market.

Impact on India

The electronic industry and telecommunications industry among others in India have been largely affected by cheaper commodities imported from China.

Vivo, Lenovo, Xiaomi and Oppo for example, are Chinese companies that have taken over the mobile phone market in India leaving Micromax and other Indian companies at a loss. 

Assessment

Although China is beginning to relax its policies encouraging investment in the country, it seems as though China may be looking forward to drive globalization. This could also mean that encouraging investment and developing infrastructure may have an underlying motive of creating a global dominance.

India has explicitly taken an anti-protectionist stance in the G-20 which could lead to dire consequences from China as India is not self-sufficient in its demands.

Having Sri Lanka under a massive debt already due to the OBOR initiative and exerting its influence in African countries with smaller economies, China’s push for development and free trade around the world can be seen as globalization in the short run. However, considering that China has historically been diplomatic in its affairs and has used its power for its own benefit, this could be the beginning of China’s rise to being a major superpower in the region.