China had one of the world’s largest and most advanced economy prior to the nineteenth century. With the rise of Europe, China’s share of the world economy shrank and its isolation from the world after the communist revolution (1946-49) did not help it to industrialize.However, adoption of market principles and Nixon’s visit in 1972, recognition as the People’s Republic of China (PRC) by Carter in 1979 and joining the WTO in 2001 helped China enormously for economic development in the recent years. Of course, the lack of transparency and authoritarian rule did help it by some extent. The double digit growth (15.2% in 1984) of the Chinese economy in the late 20th and in 21st century has been an envy of the world.
Today, China (PRC) as a country has world’s second largest economy after the monstrous economy of the USA. However, Chinese per capita income stands at 72nd in the world ranking. Chinese phenomenal economic growth and its aggressive attitude in the South China Sea has startled the Western World. It seems President Trump’s policy of “Make America great again” is used for curbing Chinese advance. Not only the USA has accused China for intellectual property theft and not playing by the trade rules but have also slammed tariffs on Chinese goods and threatened to increase them unless China agrees to change its trade policies.
The chasm between the two largest economies in the world has increased in recent days as Canada has arrested Huawei executive Meng Wanzhou in Vancouver by the USA request. Huawei is one of the largest telecom equipment and service provider in the world. Their escalation of trade war may hurt all the countries in the world but will it stop Dragan’s aspiration to be a Super Power? It may delay that eventuality but will never be able to stop it.
Narsibhai Patel
New Malden
