Is China using its economic muscle to gain dominance?

27 Apr 2017 / 18:40 H.

CHINA has been steadily building its economy over the years, clearly realising that only economically strong nations will gain universal respect.
China has achieved spectacular growth in several directions. Today, China is one of the economic super powers , though the sceptics in western countries keep on predicting that China's economy would suffer under its own weight before long. This is unlikely to happen.
How China made it possible?
A few decades back, China's economic status was no better than many developing countries. It lacked engineering and technology expertise and even capital to invest in a big way. All that China could boast was its huge population, which could make China a large potential market for the multinational companies, which have been desperately seeking outlet for their products, as markets in western countries were nearly getting saturated.
While huge potential market due to large population could be a strength for any country, it is certainly necessary that the leadership of the country should be able to manage the population well and give confidence to other countries that this huge population can be exploited to generate large buying power and expand their market base. China has done this successfully to the satisfaction of the multinational companies. In short, it can be said that China has reaped significant "demographic dividend".
India too has such strength of large population like China but there is a difference between both the countries. Being a near autocratic regime and suppressing freedom of citizens mercilessly and with vindictive approach towards the dissenters, Chinese government ensured that its huge population would not disrupt its economic and industrial projects and targets for growth.
However, India with a near chaotic democracy, where there is freedom for all, which is unchecked freedom, it could not conceive and implement projects with the speed and vigour that China was able to do.
Therefore, for the investors from abroad and multinational companies in developed countries, China was a much bigger attraction than India, since in India one would not know as to from where and when the protests against the projects would come from. On the other hand, China ensured peaceful conditions (by force), which is to the liking of the multinational investors.
China's rapid industrial and economic growth has been largely facilitated by multinational companies, who not only brought massive investments but also sophisticated technology and management practices.
China received these investment and technology with much glee and in the process not only paved way for setting up massive and sophisticated, technologically advanced projects on its soil but also slowly gained access to the modern and updated technology and know-how and expertise.
When a multinational company set up a project in a developing country, it has to necessarily introduce modern technologies, which cannot be kept away from the natives, who have to be employed by the multinational companies.
It has been a win-win situation for the both China and the multinational companies which gained investment opportunities and product outlet in China, as both of them feel that their ends have been met and needs have been fulfilled.
With billions of dollars of investments from abroad and acquisition of modern technology practices in quick time and backed by a clear headed, determined and proactive government, China has become an economic super power raising admiration and awe around the world. Today, China is the most sought-after country for trade and economic relationships.
What next for China?
Now that China has achieved the ambition of becoming a strong country due to industrial and economic growth and is being treated as equal by wealthy countries, now is the time for China to move on with its political ambitions and targets. It is now becoming increasingly clear that China has no hesitation to use its economic muscle to enlarge its territory and dominate the neighbouring countries.
The cleverest move by China so far is the US$46 billion China Pakistan Economic Corridor(CPEC), that China is building in Pakistan with feverish pace. This corridor is passing through Pakistan occupied Kashmir and Aksai Chin, which India claims that it belongs to it legally.
China is pouring millions of dollars of investment in Pakistan to build ports, roads and other infrastructure facilities across the country and also has started buying and owning important mining projects in Pakistan.
Though China claims that CPEC is only about economics, nobody who understands priorities of today's China's leadership would agree with this claim. Pakistan, an unequal partner for China, is likely to find sooner or later that it has become totally vulnerable to China's dictates in the economic and political sphere.
Today, one challenge for China could come only from India which also has huge population and potentially attractive market for investors around the world. Obviously, China would like to cut India to its size.
China's increasingly aggressive postures about consolidating its gain in Tibet and claiming Arunachal Pradesh in India as its territory is only due to its desire to demonstrate its economic muscle power and confidence that no country in the world would protest against such China's move in view of its economic super power status. The trade potentials with China are so high that no country including the US and in Western Europe would like to cross swords with China. Even US President Trump is now giving an impression that he would soften his stand with regard to China soon.
Signals of alarm
Such China scenario and the intentions of the Chinese government should really send signals of alarm to the neighbouring countries about China's increasingly dominant status and its ultimate target and goals. China has already given enough indication about its approach and expansionist ambitions by raising territorial disputes with countries like India, the Philippines, Japan, Vietnam and others.
Obviously, China's Asian neighbours have a lot of thinking to do about China and this include some thoughts by Pakistan also. Asian neighbours of China have to urgently chalk out the strategies to face the threatening Chinese dragon.

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