CHINA- AS CENTRE OF POWER

LOCATION (1)
China is located in East Asia, bordered by the Pacific Ocean on its east coast and by
14 countries, including Russia, Mongolia, and India.

China is situated between latitudes 18° and 54° North and longitudes 73° and 135°
East, which is in Eastern Asia. Fourteen countries share boundaries with China. The
total land boundaries of China measures 22,117 kilometers (13,743 miles) long.
With a population of over 1.3 billion residents, the People’s Republic of China is the
most densely populated nation in the world. China consists of twenty-two provinces,
one claimed province, four municipalities, five autonomous regions, and two specially
administered regions. The capital of China is Beijing.
The total area of China is 9,640,821 square kilometers (3,704,427 square miles). In
terms of land area, the People’s Republic of China is the second largest country in the
world and in terms of total area, the fourth largest country in the world. China’s
shoreline extends approximately 14,500 kilometers (9,000 miles), the eleventh longest
shoreline in the world. China is bordered by the South China Sea to the southeast and
by the East China Sea towards the east, separating China from Korea, Taiwan, and
Japan.

LIBERALISATION OF CHINESE ECONOMY(2)

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China’s economic success since 1978 has been linked to its rise as a great power. China has
been the fastest growing economy since the reforms first began there. It is projected to
overtake the US as the world’s largest economy by 2040.
After the inception of the People’s Republic of China in 1949, following the communist
revolution under the leadership of Mao, its economy was based on the Soviet model. The
economically backward communist China chose to sever its links with the capitalist world.
. The model was to create a state-owned heavy industries sector from the capital
accumulated from agriculture. As it was short of foreign exchange that it needed in order
to buy technology and goods on the world market, China decided to substitute imports by
domestic goods.
. This policy increased production.
This decade also saw changes to freer pricing policies, as well as the country being
opened up to foreign investment for the first time. The mid 80’s to the mid 90’s saw
further Chinese economic reforms, controls and government invention on private
businesses started to decrease.
The mid 90’s onward brought vast Chinese economic reforms, since many
conservative leaders entered retirement or were overruled. The government
continued the privatization but too a much larger extent with many state owned
enterprises (SOEs) being privatized or liquidated.
The rapid relaxation was slowed down around 2005, halting the privatization
process but is still on-going to this day. The Chinese government even started
increasing subsidies again and continues exercising control in important industries
such as the banking or the health-care sector .

Its economic integration into the region makes it the driver of East Asian growth, thereby
giving it enormous influence in regional affairs. The strength of its economy, together with
other factors such as population, land mass, resources, regional location and political
influence, adds to its power in significant ways.

China’s liberalization process also has its beginning with the Chinese economic
reforms which started in the late 70’s. Given its state of development, the country
had a strong focus on the primary sector and the first reforms were related to
agriculture. To avoid a repeat of the 1959 famine disaster, Chinese farmers were
allowed to keep a share of their output and not having to give everything to the
state. This policy increased production.
This decade also saw changes to freer pricing policies, as well as the country being
opened up to foreign investment for the first time. The mid 80’s to the mid 90’s saw
further Chinese economic reforms, controls and government invention on private
businesses started to decrease.
The mid 90’s onward brought vast Chinese economic reforms, since many
conservative leaders entered retirement or were overruled. The government
continued the privatization but too a much larger extent with many state owned
enterprises (SOEs) being privatized or liquidated.
 The rapid relaxation was slowed down around 2005, halting the privatization
process but is still on-going to this day. The Chinese government even started
increasing subsidies again and continues exercising control in important industries
such as the banking or the health-care sector .

As countries develop over time and grow economically, they change with the challenges that come
with this. China’s liberalization comes into play in the scenario of relaxation of government restrictions
in many different areas such as social, political and economic policy.

China has been no different in this regard, significant Chinese economic reforms regarding
government restrictions has been seen in the form of an obvious liberalization process that has been
implemented. The liberalization that has taken place in China has almost exclusively been a result of
the Chinese economic reform. It is still ruled by a centralized “communist” government, which has
been in place since 1949 and there is little reason to expect a relaxation regarding political control
anytime in the near future.

It is occasionally misunderstood that liberalization is exclusively about political aspects, when this
process is referred to as democratization. However, liberalization and democratization can occur
independently of each other—with China being the best example.

------------------------------

EFFECTS OF LIBERALISATION OF CHINESE

ECONOMY(3)
Liberalization of chine economy allowed China to use its resources to establish the
foundations of an industrial economy on a scale that did not exist before. Employment and
social welfare was assured to all citizens, and China moved ahead of most developing
countries in educating its citizens and ensuring better health for them.
The economy also grew at a respectable rate of 5-6 per cent. But an annual growth of 2-3
per cent in population meant that economic growth was insufficient to meet the needs of a
growing population. Agricultural production was not sufficient to generate a surplus for
industry.
Premier Zhou Enlai proposed the ‘four modernizations’ (agriculture, industry, science and
technology and military) in 1973. By 1978, the then leader Deng Xiaoping announced the
‘open door’ policy and economic reforms in China. The policy was to generate higher
productivity by investments of capital and technology from abroad.
 The privatization of agriculture in 1982 was followed by the privatization of industry in
1998. Trade barriers were eliminated only in Special Economic Zones (SEZs) where foreign
investors could set up enterprises.
Privatization of agriculture led to a remarkable rise in agricultural production and rural
incomes. High personal savings in the rural economy lead to an exponential growth in rural
industry. The Chinese economy, including both industry and agriculture, grew at a faster
rate.
The new trading laws and the creation of Special Economic Zones led to a phenomenal rise
in foreign trade. Generally, trade liberalization is beneficial for the Chinese economy.
It opened China’s door to the world, brought competition and technology to China,
and made China to become a big trading country. Low-cost labor force and fixed
exchange rate attracted foreign investors and increased China’s GDP sharply
While the Chinese economy has improved dramatically, not everyone in China has received
the benefits of the reforms.
Unemployment has risen in China with nearly 100 million people looking for jobs. Female
employment and conditions of work are as bad as in Europe of the eighteenth and
nineteenth centuries. Environmental degradation and corruption have increased besides a
rise in economic inequality between rural and urban residents and coastal and inland
provinces.
It is occasionally misunderstood that liberalization is exclusively about political
aspects, when this process is referred to as democratization. However, liberalization
and democratization can occur independently of each other—with China being the
best example.

As countries develop over time and grow economically, they change with the challenges that come
with this. China’s liberalization comes into play in the scenario of relaxation of government restrictions
in many different areas such as social, political and economic policy.

China has been no different in this regard, significant Chinese economic reforms regarding
government restrictions has been seen in the form of an obvious liberalization process that has been
implemented. The liberalization that has taken place in China has almost exclusively been a result of
the Chinese economic reform. It is still ruled by a centralized “communist” government, which has
been in place since 1949 and there is little reason to expect a relaxation regarding political control
anytime in the near future.

It is occasionally misunderstood that liberalization is exclusively about political aspects, when this
process is referred to as democratization. However, liberalization and democratization can occur
independently of each other—with China being the best example.
 ------
Generally, trade liberalization is beneficial for the Chinese economy. It opened China’s door to the world,
brought competition and technology to China, and made China to become a big trading country. Low-cost
labor force and fixed exchange rate attracted foreign investors and increased China’s GDP sharply

CHINA’S INVESTMENTS ACROSS THE WORLD(3)

Ch ina is the world’s second largest economy by nominal GDP ($11.3 trillion in 2016, according to the IMF 1) and is
one of the fastest growing countries since the beginning of the 21st century, with an average growth of 10%.

Regionally and globally, China has become an economic power to reckon with. The
integration of China’s economy and the inter-dependencies that this has created has
enabled China to have considerable influence with its trade partners.
China’s foreign investment has grown ten-fold over the last decade; the
country now ranks as the third largest source of overseas investment. It has
been an especially welcome source of foreign capital to developing
countries, contributing significantly to infrastructure development in areas
such as construction and information technology

……………………………….
The China Global Investment Tracker (CGIT) is the only comprehensive public
data set covering China’s global investment and construction, which are
documented both separately and together. Inaugurated in 2005, the CGIT
includes over 3700 large transactions across energy, transportation,
technology, property and other sectors, as well as more than 300 troubled
transactions.
……………………….
In the early 2010s, China’s investments in North America and Europe were largely
driven by a demand for energy security. Roughly one-fifth ($130.4 billion) of total
Chinese investment into North America and Europe from 2005-2019 was in the energy
sector. More recently, China has expanded its investment portfolio to focus on
acquisitions intended to increase the market competitiveness of Chinese companies
China’s outward investment totaled USD 123.1 billion in 2014.
• Also by the end of 2014, 18,500 domestic investors had set up 29,700
establishments in 186 countries and regions.
 • 84.7 per cent of China’s ODI was in developing and transition economies
and 15.3 per cent were in developed economies.

Hence, its outstanding issues with Japan, the US, ASEAN, and Russia have been tempered
by economic considerations. It hopes to resolve its differences with Taiwan, which it
regards as a renegade province, by integrating it closely into its economy. Fears of China’s
rise have also been mitigated by its contributions to the stability of the ASEAN economies
after the 1997 financial crisis. Its more outward looking investment and aid policies in Latin
America and Africa are increasingly projecting it as a global player on the side of developing
economies.
…………………………………..
In the early 2010s, China’s investments in North America and Europe were largely
driven by a demand for energy security. Roughly one-fifth ($130.4 billion) of total
Chinese investment into North America and Europe from 2005-2019 was in the energy
sector. More recently, China has expanded its investment portfolio to focus on
acquisitions intended to increase the market competitiveness of Chinese companies
chinapower.csis.org
………………………….
The China Global Investment Tracker (CGIT) is the only comprehensive public
data set covering China’s global investment and construction, which are
documented both separately and together. Inaugurated in 2005, the CGIT
includes over 3700 large transactions across energy, transportation,
technology, property and other sectors, as well as more than 300 troubled
transactions.
……………………….
China’s foreign investment has grown ten-fold over the last decade; the
country now ranks as the third largest source of overseas investment. It has
been an especially welcome source of foreign capital to developing
countries, contributing significantly to infrastructure development in areas
such as construction and information technology
……………………..
 China’s outward investment totaled USD 123.1 billion in 2014.
• Also by the end of 2014, 18,500 domestic investors had set up 29,700
establishments in 186 countries and regions.
 • 84.7 per cent of China’s ODI was in developing and transition economies
and 15.3 per cent were in developed economies. www.iisd.org
Ch ina is the world’s second largest economy by nominal GDP ($11.3 trillion in 2016, according to the IMF 1) and is
one of the fastest growing countries since the beginning of the 21st century, with an average growth of 10%.

CHINA’S BRI PROJECTS (1)

The BRI was launched by Chinese President Xi Jinping when he came to power in 2013. The
BRI is an ambitious plan that aims to link Southeast Asia, Central Asia, the Gulf region,
Africa and Europe with a network of land and sea route. But the initiative is about far
more than infrastructure.

It is an effort to develop an expanded, interdependent market for China, grow

China’s economic and political power, and create the right conditions for China to
build a high technology economy.

There are three main motivations for the BRI:

1. The first, and most discussed internationally, is China’s rivalry with the US.
The vast majority of Chinese international trade passes by sea through the
Malacca strait off the coast of Singapore which is a major US ally. The
initiative is integral to China’s efforts to create its own more secure trade
routes.
2. The second key reason for the initiative is the legacy of the 2008 financial
crisis. China’s government responded to the emergency with a ¥4tn stimulus
package, issuing contracts to build railways, bridges, and airports, but
saturated the Chinese market in the process. The Belt and Road framework
provides an alternative market for China’s vast state-owned companies
beyond the borders of China.
3. Finally, the Belt and Road is seen as a crucial element in the Chinese
government’s efforts to stimulate economies of the country’s central
provinces, which historically lag behind richer coastal areas. The government
uses the Belt and Road to encourage and support businesses in these central
regions, allocating budget generously, and encouraging businesses to
compete for Belt and Road contracts.
 In total, China has already spent an estimated $200 billion on such efforts.
Morgan Stanley has predicted China’s overall expenses over the life of the
BRI could reach $1.2–1.3 trillion by 2027, though estimates on total
investments vary. 

Majority of the projects under China's ambitious multi-billion-dollar Belt and Road Initiative
(BRI) are either adversely or partially affected by the coronavirus pandemic, according to a
Chinese official.

About a fifth of the projects under the BRI, which aims to boost trade and investment
across Asia, Africa and Europe to further China's global influence, had been "seriously
affected by the pandemic, according to Wang Xiaolong, director-general of the foreign
ministry's international economic affairs department.

About 40 per cent of the projects were adversely affected", and a further 30-40 per cent
were somewhat affected", Hong Kong-based South China Morning Post quoted Wang as
saying.

The BRI was launched by Chinese President Xi Jinping when he came to power in 2013. It
aims to link Southeast Asia, Central Asia, the Gulf region, Africa and Europe with a network
of land and sea route. The CPEC, which connects Gwadar Port in Pakistan's Balochistan with
China's Xinjiang province, is the flagship project of the BRI.
In total, China has already spent an estimated $200 billion on such efforts. Morgan
Stanley has predicted China’s overall expenses over the life of the BRI could reach
$1.2–1.3 trillion by 2027, though estimates on total investments vary. 
 SYNOPSIS
The liberalization of the Chinese economy and its effects has modified
and changed the economy of china throughout the years. The
privatization of agriculture and the new trading laws has changed
China’s investment across the world and has made better opportunities
for the people of China in some ways. China’s BRI project also helps
China create its own secure trading route. All these things have helped
China grow as a whole and now is the world’s second largest economy
by nominal GDP and is one of the fastest growing countries since the
beginning of the 21st century, with an average growth of 10%.
 BIBLOGRAPHY
WEBSITES
ncert.nic.in
intrepidsourcing.com
www.news18.com
www.mapsofworld.com
chinapower.csis.org
www.iisd.org
 ACKNOWLEDGEMENT
I would like to express my special thanks to our principal Mrs. Suchitra
Bandopadhyay for providing me with the golden opportunity to do this
wonderful project on the topic “CHINA- AS CENTRE OF POWER”. I
would also like to thank my parents and classmates for their constant
support which helped me complete my project in the limited time. I
would also like to express my gratitude tour political science teacher
Mrs. Bani Chakraborty for her helpful efforts and support to complete
my project.
I did this project not for marks but to increase our knowledge which may
help us in the future.
 CERTIFICATION
It is certified that this project work done by a student of class XII
Humanities under the guidance of Mrs. Bani Chakraborty.

PRINCIPAL

INERNAL EXAMINER

EXTERNAL EXAMINER
CONTENT
CHINA – AS CENTRE
OF POWER