Have the worst wounds of the crisis been avoided? We might have cauterized the injury with an infection still inside. To name a few: advanced economies, the European Union (EU) and emerging nations face dire economic imbalances; archaic geopolitical style maneuvering is occurring at rising rates in Eastern Europe while Africa and the Arab region are bleeding migrants in alarming numbers. Even if you do not add in a changing climate, these relations will not equal a description of ‘smooth sailing’ for global economics in the foreseeable future. At the very least, they show an expressed need to move away from crisis economics as a ‘new normal’ and return to the ability to use conventional Keynesian models of economics. If taken as critical, as they should be, there is a need for broad structural changes that would see new models of economics that temper global arrangements in exchange for a more powerful state.
International Political Harmony:
A Chinese Creation
This essay attempts to argue that China’s international political economy (IPE) reflects a new understanding of international relations theory (IRT) that can be partly defined by Western ideologies but constitutes an independent approach. China’s approach to global trade in the 21st century does possess numerous threads of thinking that resemble the Western IRT of Realism, Liberalism, and Marxism. None of those ideas can stand alone and adequately define how China assesses or acts about the phenomenon of globalization. Viewing China as a constructivist would, through identity and perspective, you can begin to see how Chinese thinkers are developing IRT through a uniquely Chinese narrative. Using resources about a perceived trade war with the United States will highlight the possible development of a new IRT built upon harmony and not solely based on the spectrum between self-interest and cooperation.
An original answer based on my Quora.com response.
Since the 1970’s, China, with the largest population worldwide, has been opening up its economy. Any industry it grows in is going to reverberate globally more so than other comparable nations because of the population alone. For example, look into the global scare that happened when textile regulation ended. Numerous countries were justifiably worried because of China’s population and expertise in textile.
In the 1990’s America further liberalized its economy with a sharp easing of regulation; this spurred American FDI (foreign direct investment) in other countries to soar. FDI can be thought of physically as actually building the factory and hiring the workers (all that takes an investment, right?). Because of deregulation, it was more profitable to move production to a place where it’s cheaper to produce and less expensive on labor. Why do they do this? American consumers demand quick, cheap and highly variable products. American companies are maximizing their profits and also trying to satisfy American consumers.
It’s as simple as that, and if you are told otherwise, please, critically question it.
60% of all Chinese exports are from foreign-owned companies. So, 60% of what China sells is because of foreign corporations desiring it. (A Trade War with China?, Neil Hughes, 2005).