Global PersPectives
regional trade and economic agreements, par-
ticularly with South East Asian Nations (ASEAN)
states and within the Asia- Pacific Economic
Cooperation (APEC) forum. In 2015, China
launched the Asian Infrastructure Investment
Bank, a rival to the World Bank, the Interna-
tional Monetary Fund, and the Asian Develop-
ment Bank. Headquartered in Beijing, more than
50 members have joined the bank, over the
objections of both the United States and Japan.
China has acted responsibly toward both
the advanced cap i tal ist states and the devel-
oping world. China finances a large portion
of American debt because of its large
balance- of- trade surplus with the United
States. During the 2008 international finan-
cial crisis, China refrained from putting
pressure on the U.S. dollar and interest rates.
To help rebalance the international economy,
China is encouraging domestic consump-
tion, increasing workers’ pay, and allowing
its currency to appreciate gradually. Even
though China has geopo liti cal disputes
with Japan, the economic ties between the
two countries remain strong.
Like many other states, China needs natu-
ral resources. Thus, China has forged rela-
tionships with African countries by investing
in infrastructure, technology, and raw mate-
rials. With trade of more than $210 billion,
China is Africa’s top business partner. Chinese
private companies, businesses, and touristsFollowing almost a century of seeing itself as a
victim of the great powers and after de cades
of internal revolution when it was closed to
the world, China is becoming a confident great
power. The country wields increasing economic
and po liti cal influence, using both bilateral and
multilateral diplomacy. China’s interests align
quite closely with those of other major powers,
although they are not parallel. The country
now operates within the rules of the con-
temporary international system; it has become
socialized into prevailing international norms.
The economic revolution in China, its
embrace of free markets, and its opening to
foreign investment and enterprise have led
to almost four de cades of unpre ce dented
economic growth of more than 9 percent per
year. As the world’s second- largest economy,
China has maintained that it is in China’s inter-
est to continue this “peaceful rise,” or zhong-
guo heping jueqi, serving as a viable economic
model for many states.
China’s participation in world trade regimes
has increased its global presence to the ben-
efit of all parties. China’s accession to the
World Trade Or ga ni za tion (WTO) and its
Free Trade Agreement with the United States
have allowed it to maximize economic output
while demonstrating to the world that it can
adhere to WTO regulations, such as nondis-
crimination policies and elimination of price
controls. China is also now actively engaged inRealists posit that the international system changes as great powers gain or lose power
relative to other states. As China’s economic and po liti cal power has grown, many
scholars have speculated whether China will catch up to the United States, leading to
a new bi polar ity, or surpass the United States, becoming the new hegemon in a unipolar
system. Chinese government officials have stated their intentions.the InternatIonal system: a VIeW from chIna
ESSIR7_CH04_106_131_11P.indd 126 6/14/16 10:04 AM