The Rise of China in Global Governance The rise of China to the global level is one of the major milestones of the 21st century. China is the second largest economy in the world with a complex international policy, which is directly related to its foreign trade policies, investing, and financial intermediaries. Consequently, its strategy for global governance is multi-dimensional. This article analyzes China’s stance on global governance by looking into its finances, political moves, as well as the overall impact on the worldwide economy. Change and development in China’s approach to global governance have been very dynamic in the last few decades. Financial Mechanics for Projects on Belt and Road Initiative (BRI) One of the robust pillars on which China’s strategy for global governance rests is its Belt and Road Initiative (BRI), operationalized in 2013. The BRI is an ambitious and large-scale infrastructure and investment program designed to connect Asia, Africa, and Europe through land and sea routes. The BRI involves a massive outflow of resources because estimates have shown that China’s investment tops more than $1 trillion. The BRI is not only an economic enterprise but facilitates further strategic influence by China in international trade and finance. Through this capitalization in developing countries by building infrastructure and financing projects, China not only opens up new markets for its products but also secures its supply chains by gaining some degree of political power over participating countries. This has already raised concerns about debt diplomacy, whereby countries indebted to China may align their policies increasingly closer to Beijing at the expense of the possible financial and political order internationally. In this way, financial institutions, much like the China-established Asian Infrastructure Investment Bank in 2015, play important roles in BRI projects. The AIIB tries to brand itself as an alternative to Western-based financial institutions, like the World Bank or the IMF, with loans intended for infrastructure development across Asia. Internationalization of the Renminbi (RMB) The internationalization of currency is another major part of the Chinese worldwide governance concept – the renminbi (RMB). In 2016, a long-anticipated breakthrough happened: RMB was admitted to IMF Special Drawing Rights, thus marking an important point in the final general strategy for improving its status in world circulation. The internationalization of the RMB has several objectives; to begin with, it will reduce reliance on US dollars and therefore lessen those risks associated with US monetary policies and exchange rate uncertainty. On the other hand, as more Chinese firms conduct trade or invest using RMB, they will be able to assert themselves even more globally among their competitors. However, through specific and recent initiatives such as CIPS, it usurps the SWIFT system, whose dominance is strongly based on the West. Participation in Multilateral Institutions Participating in multilateral institutions is an integral part of China’s way of guiding global governance. In recent years, this has particularly involved the pressing need for reform to give the needs of developing countries better consideration within institutions like the UN, IMF, and World Bank. Recently, it has been more offensive in putting forth its power within the UN, especially regarding issues concerning peacekeeping, climate change, or international development. On financing, China has made outsized contributions to the UN and other global organizations to be recognized as a leader in the world. And in the IMF, Beijing has pushed for quota changes that would afford greater voting rights to emerging economies. Similarly, within the World Bank’s operations, it has acted with great efficiency, taking into respect mainly poverty alleviation programs and supporting physical capital projects for less developed nations. All these actions are indicative of an overarching desire on the part of China to refashion international power structures in keeping with its dream of a more multipolar planet—summing up what aware people point to every day on this grossly imperialist planet chock-full of inequalities rather than justices. Geopolitical Implications China’s approach to global governance matters a lot in geopolitical terms. For example, through alternative financial institutions and promoting the RMB, China is posing a challenge to the US dollar and the Western-dominated global financial system. Hence, the West has been worrying about what this could mean for US global governance in terms of power erosion. The counterpoint to this point is that many developing countries have embraced China with open arms because they see it as their protector. Specifically, it’s through BRI that nations that were neglected by Western banks for so long can now have roads, bridges, and railways built or repaired. Nonetheless, there are also some criticisms surrounding China’s global governance strategy; debt sustainability issues in BRI projects and lack of transparency, plus environmental concerns, have been raised against them. On the other hand, alternative initiatives such as G7’s Build Back Better World (B3W) initiative have been proposed by the West, especially the US, to counter China’s influence. Future Course of Chinese Strategy As China ascends its ranks into becoming a world power, its role in global governance will unavoidably expand even at the cost of present power structures like Viagra or bring about the reconstruction of the world financial system. Several aspects will characterize the future course of Chinese strategy on global governance: Economic growth Domestic stability Reactions from other dominant countries When the world is increasingly multipolar, China’s attitude towards global governance will most essentially determine international relations and the global economy going ‘forward’.
