December 04, 2014
How to Deal with Chinese Assertiveness: It's Time to Impose Costs
China’s reemergence as a wealthy and powerful nation is a fact. In recent decades its rise has been unprecedented, moving from the tenth-largest economy in 1990, to the sixth-largest economy in 2001, to the second-largest economy in 2010. According to the International Monetary Fund (IMF), China now surpasses the United States in terms of purchasing power parity. By the same measure, China’s economy was only half the size of America’s a decade earlier, and it is this trajectory that is molding assumptions about the future regional power balance and order across the Indo-Pacific. Recent declines in growth and rising questions about future stability have yet to alter most perceptions about tomorrow’s China.
China’s deepening integration with the regional and global economy underscore the difficulty of pushing back when China transgresses rules and norms. Take the issue of infrastructure. Infrastructure will gradually redraw the strategic economic and security connectivity of the twenty-first century, and China’s infrastructure prowess has been on prominent display of late. President Xi initiated the recent Asia-Pacific Economic Cooperation (APEC) forum with a speech touting the linear projection that China will invest some $1.25 trillion over the next decade overseas, and wants to invest $40 billion in re-establishing the old Silk Road while also building a new Maritime Silk Road. These sums are in addition to China’s proposal for a new $50 billion Asia Infrastructure Investment Bank. Like the New Development Bank (previously called The BRICS Development Bank), these schemes chip away at the existing Bretton Woods international economic architecture with bodies of uncertain governance. As Indian Union Commerce Minister Nirmala Sitharaman put it at a recent conference, “If Bretton Woods institutions will not provide infrastructure financing for emerging economies, then we will have to find alternatives.”
Read the full article at The National Interest.
More from CNAS
-
Our Military Leaders Need a National Security ‘Fast Lane’ to Compete With China
Commentary
The spy balloon is a wake-up call that highlights the boldness and aggression of China. This should remind Americans to expect more focus and agility from their government’s n...
By General Mike Holmes, U.S. Air Force (Ret.) & Dan Patt
-
Calling Check: Technology Competition with China
Podcast
This week Emily Kilcrease, director of the Energy, Economics, and Security program at CNAS, joins The Asia Chessboard podcast from CSIS for a wide ranging discussion on the i...
By Emily Kilcrease
-
Atomic Strait: How China’s Nuclear Buildup Shapes Security Dynamics with Taiwan and the United States
Reports
This report examines the intersection of China’s nuclear modernization and cross-Strait tensions, especially how they might play out during a crisis, contingency, or conflict ...
By Jacob Stokes
-
Opportunities and Challenges for Trade Policy in the Digital Economy
Congressional Testimony
This hearing addresses digital trade, and I will focus my testimony on the national-security problems in this area posed by China – specifically, concerns about China’s open a...
By David Feith
