China’s economic power and global ambitions have been fueled by decades of reform and opening up to the world. With its massive industrial capacities and trade footprint, China has become a major player on the global stage. In terms of purchasing power parity, China’s economy surpassed that of the US in 2017. When looking at industrial value-add, including manufacturing, mining, and utilities, China overtook the US in 2011 and has continued to outpace US industrial power ever since. In 2023, China accounted for a significant portion of global trade and foreign direct investment, showcasing its growing economic influence.
Beijing’s approach to global economic power differs from traditional US-style globalization. China is wary of unfettered globalization and is pursuing a strategy that reflects its unique economic system and security concerns. As Beijing prepares for increased rivalry with the US and its allies, China is using guerrilla strategies to gradually achieve its goals without direct confrontation. This approach allows China to target smaller sections of their adversaries’ resources in order to slowly deplete their larger opponent.
Max Zenglein and Francois Chimits of the Berlin-based think tank MERICS delve into China’s unique approach to global economic power in their paper commissioned by the Hinrich Foundation. They highlight how China’s growing economic influence is shaped by a combination of security-centered goals, a Marxist-Leninist economic system, and ambitions for greater global influence. Beijing’s pursuit of global economic power is a complex balancing act that requires careful navigation of international relations and internal dynamics.
China’s success can be attributed to its ability to adapt to changing circumstances while remaining true to its principles. The country has embraced free market policies while maintaining control over key industries such as energy production and transportation infrastructure. This has allowed it to attract foreign investment while maintaining sovereignty over critical sectors.
However, this approach also raises questions about Chinese governance structures and human rights abuses within the country. While Beijing has made significant progress in lifting millions out of poverty through rapid industrialization, it continues to face criticism from international human rights organizations for cracking down on dissenters and restricting civil liberties.
Despite these challenges, it is clear that China will continue to play an increasingly important role on the world stage in coming years
