1. China’s Rise & Its Impact on the World and the USA Session 8

2. Contents I. China’s Achievements in 30 Years II. China’s Impact on the World III. China’s Impact on the USA IV. Discussion

3. I-1 China’s Economic Rise 1. GDP has grown at an annual average rate of 9.5 % over 30 years 2. $5,88 trillion GDP (10) makes the world’s 2 nd largest economy- CIA World Facebook 3. Largest exporter ($1.506 trillion), second largest importer ($1.307 trillion), second largest trading nation in the world 4. Foreign reserves: $3 trillion (Mar 2011; ranked 1st). More than a billion per day. 5. Foreign direct investment (FDI) to China is 100 billions & China’s FDI is 59 billions (2010) - Wikipedia

4. China - A Drive Force China’s development is a powerful driving force behind the global economic growth. In 1990­2002, China was placed first, with a contribution as high as 27.1%. (United States made the biggest contribution in the 1980s, with its added GDP accounting for 21% of the world’s total during that decade). China’s GDP in 1978 was only 2% of the world– Hu Angang’s presentation at the China Policy Institute, University of Nottingham April 2007 According to “The Economist” (July 28, 2005), since 2000, China’s contribution to global GDP growth was two times that of India, Brazil and Russia combined.

5. More China is the largest creditor nation in the world and owns approximately 20.8% of all foreign-owned US Treasury securities- Major Foreign holders of U.S. Treasury Securities, U.S. Treasury Department. Major Foreign holders of U.S. Treasury Securities, U.S. Treasury Department.

7. I-2 Improvement of Living Standards Since 1978 400 million people have been lifted out of poverty in China — about 75 percent of the world's total poverty reduction over the last century. Agriculture tax exempt in 2006 Free education up to 9 th grade life expectancy reached 73 by 2010

8. 1-3. China ’ s Progress in Technology Canton-Wuhan high-speed train at speed of 165 miles per hour; 4 hours from Beijing to Shanghai (600 miles) It now has the second largest R & D budget China’s GPS Walk in the space

9. High Speed Railroad

10. I-4. Examples of Speed of Development 1. Total length of highways: 39 th in world in 1997, 2 nd in 2002; The total length of China's expressways is 65,065 km in 2009 (1989- 2009), the second longest only after the United States. 2. Number of cell phones: 1 billion in March 2012. 3. 5 million college graduates a year, including 700,000 engineers, 10 times as many as the U.S. 4. Since 2009 annual production of automobiles in China exceeds that of the European Union or that of the Unites States and Japan combined and 44.3% local brands, wikipedia

11. In two decades China has experienced the same degree of industrialization, urbanization and social transformation as Europe did in two centuries - Newsweek, Issue 1, 2008 “Rome is not built in one day.” But a new “Manhattan” appeared in Shanghai in 15 years.

12. I-5 “Missions Impossible” Accomplished in China Centrally-planned economy transformed into market economy, with growth the fastest ever New rising power has not resulted in a war, territorial expansion, or a challenge to the world order

13. 1-5 China and Chinese are Everywhere! Thanks to Chinese art, films, cuisine, martial arts, acupuncture and high school world history courses, Chinese culture is becoming more mainstreamed into the American way of life.

14. II. China’s Influence in the World It is a nation that has risen quickly from an isolated "third-world" status to a "significant global player" China’s Influence in Africa China’s influence in South America China’s influence in World Bank

15. II-1. Sino-African Summit The Sino-African Summit in 2006 was the largest ever such meeting in China. 48 African leaders from more than 30 African countries arrived in Beijing.

16. China’s Investment The country has emerged as Africa’s largest trading partner. Two-way trade has increased dramatically to an all-time high of $166.3 billion, triple the figure for 2006. Both imports and exports have registered impressive growth rates. According to estimates, there are around 800 Chinese firms in Africa, investing in the infrastructure, energy and banking sectors.

17. III-2. China’s Influence in South America During his visits to Brazil and Argentina in November 2004, Chinese President Hu Jintao announced plans to invest $100 billion in Latin America over the next decade, primarily for infrastructure and energy projects. These investments made by the Chinese government will undoubtedly bring political influence as well.

18. III-3. China’s Influence in the World Bank World Bank member countries reached an agreement on Sunday to shift more power to emerging and developing nations, under which China's votes increased to 4.42 percent from 2.77 percent, making it the third largest voting power holder in the Washington-based international institution. The United States currently still holds a 16.4- percent voting share in the World Bank, and Japan 7.9-percent.

19. III. China’s Influence in the USA Chinese language is fastest growing foreign language in the US while other foreign languages declined significantly China’s influence in economy The Beijing Consensus vs. the Washington Consensus “People should pay attention to China. It is a phenomenon in every respect.” Bill Gates

20. III-1. Economic Impact "They (China) are growing at about twice the pace of our exports to the rest of the world," he said. "What that means is our exports to China will double in the next four to five years, and that means China is likely to become our largest trading partner sometime roughly 10 years from today." US Treasury Secretary Timothy Geithner The two economies are each other's second largest trading partner now.

21. III-2. Impact on Media Pick up almost any journal or magazine of expert opinion and you will read that China is disintegrating, or that it is united and stable; that Sino-American relations are frayed to the breaking point, or that they are just over yet another nettlesome hump; that fearsome China must be "contained", or that outward-opening China must be "engaged"; that its military is growing ominously, or that it is underfunded and fitted out with obsolescent weaponry; that its commerce is drastically overheated and facing crisis, or that it is in great shape; that China may attack Taiwan, or that Taiwan may soon be China's biggest foreign investor; that China may take over the Spratly Islands, or that it will not because it cannot; that China will subjugate Hong Kong after it is no longer a British colony in 1997, or that Hong Kong has been colonizing China for years; that a budding civil society was crushed at Tiananmen, or that the protesters themselves did not know what they were doing, or wanted; that post-Deng China will dissolve into chaos, or that a new leadership will pluralize China's politics.(3) Atavistic China seems to be lying in wait for the next trough in history's recurring cycle -- or not, as the case may be.

22. Continue China has not been a nation for Americans, but a metaphor. To say "China" is instantly to call up a string of metaphors giving us the history of Sino-American relations, and fifty years of "China watching" by our politicians, pundits, and academics: unchanging China, cyclical China, the inscrutable Forbidden City, boxes within boxes, the open door, sick man of Asia, the good earth, agrarian reformers, China shakes the world, who lost China, containment or liberation, brainwashing, Quemoy and Matsu, the little red book, ping- pong diplomacy, the week that changed the world, the China card, the gang of four, the four modernization, China as insatiable market, Tiananmen, butchers of Beijing, China shakes the world (again), cycles of rise and decline (again), unchanging China (yet again).(1) Beyond all that, our pundits and experts remain captured by a master metaphor. that of China's unfathomable-in-a-lifetime vastness, its historical depth and profundity, and (therefore) its overriding importance to the world.

23. III-3. The Washington Consensus in 1990s Neo-conseratism It advocates deregulation, praises market fundamentalism and opposes government interference. It advocates privatization, blazons the perpetual role of the "private ownership myth" and opposes public ownership. It stands for global liberalization, protects the liberal economy under the US' dominance and opposes establishing a new international economic order. It affirms the individualization of welfare, emphasizes the shift of responsibility of social security from the government to individuals and argues against welfare society. Internationally, unilateralism -The Iraq War

24. The Beijing Consensus Joshua Cooper Ramo A commitment to innovation and constant experimentation. There are no set rules carved in stone and handed down by the IMF to a Moses-like prophet that everyone must follow…... There is, instead, constant tinkering and constant change, and a recognition that different strategies are appropriate for different situations. non-interference in other countries’ domestic affairs & respect sovereignty of other countries “Harmonious society” at home and peaceful development in the world

25. Discussion How will China’s rise challenge the status quo of the world and the United States? How can we understand China’s self- claimed peaceful rise/development? Can a peaceful co-existence remain between the United States and China?