In 2003, in terms of absolute level of Gross National Income (GNI) at Purchasing Power Parity (PPP) exchange rates, China, with $6.4 trillion in GNI, was the world’s second largest, second only to the US at $11 trillion. India with $3 trillion in GNI was fourth behind the US, China and Japan (3.6 trillion).iii China and India has accounted for roughly 40% of global GDP growth in recent years.iii China has passed Japan as the world’s second largest economy and economists have projected that in 10 years it will replace the US as the world’s leading economy. This threat to white supremacy and hegemony will lead to a new new world order and is something the West will try to prevent at all cost.
China has used various techniques to establish its growing influence in the world. Chinese leaders have manipulated their currency to keep the prices of their exports artificially low; offered loans to developing nations with no-strings attached thereby undermining the World Bank and International Monetary Fund; they have forgiven billion dollar bilateral debt thus ingratiating themselves to debtors; they have denounced protectionism, yet they protect their markets. For example, China recently imposed strict export quotas on rare earths, indispensable resources in high technology. Rare metals such as lanthanum, neodymium and promethium are almost exclusively mined in China and clearly China has no intention of exporting these metals (without demanding considerably elevated export tariffs). China has dismissed protests from the US with the claim that World Trade Organization (WTO) rules allow a nation to protect its own natural resources.
In 2010, China increased its military budget by 7.5 percent. Though the US military budget is eight times larger, the West is concerned by China’s increase. Some experts feel that China poses a threat to Japan and other Asia nations, still others believe China’s moves are preparatory steps for world conquest. However, a more astute look at the situation would demonstrate that that is not China’s style. China has not militarily attacked a nation in over thirty years—China prefers the yin as opposed to the yang approach. If China is going to take over the world, it will be through trade rather than bombs. China is pursuing an aggressive trade policy with the West, granting low-interest loans to Afrikan and Latin American nations, using diplomatic pressure when necessary, and still providing the largest number of soldiers for United Nations peacekeeping missions. Yes, China is exercising its newfound power effectively and it is a power that does not resemble the hard or “yang” power of the West.
As its economy booms, China has sought and acquired many of the resources it needs to sustain its growth. Pursuant to that, China increasingly has turned to Afrika for much of her needs. While Chinese interests in Afrika have surged, collectively the West continues to make the vast majority of investments in Afrika and remains highly influential. Still, China’s activities have created tension between herself and Afrika’s former colonial masters. But the most important competitors in this new cold war or new new world order however will be China and the present leader of West, the US.