As the newsmill pumps out headline after headline about BRICS, and the threat of a new world currency, we see the same question being posed: Is this the start of a new world order? With BRICS being a Chinese-dominated institution, we must look at the relationship between the US and China, and how China’s rise is affecting the world order and the U.S’ role in it.
All of this week’s readings were published before 2023, with the earliest being 2017 and the most recent in 2022. This rise in power isn’t a new development, and was to be expected. Especially with the previous presidential administration’s policy of unilateralism, we have allowed other countries to become more involved in the global state, like China. China has begun using their own money to fund the BRI, or Belt and Road Initiative. This initiative funds all infrastructural development, and provides labor and materials for those projects. (Economy 2022) This has allowed for China to begin to spread its influence in Latin America, Africa, and Asia. Regions where the US used to primarily be involved, have now been taken over by the Chinese and their influence. “The BRI has positioned China at the center of the international system, with its physical, financial, cultural, technological, and political influence flowing to the rest of the world.” (Economy 2022) China’s role in the global stage is undeniable, but it isn’t going without opposition.
The readings also mentioned the Quad partnership which is an alliance between the United States, India, Japan, and Australia, who were formed to counter China’s role in the Indo-Pacific. While this partnership has not been successful with member states waning in their interests and goals, this brings up the steps countries are taking to protect itself from China. We are seeing a stance taken by the US to ally itself with others against the growing power in China. We see this also with the Bidens’ administration stance on a free Taiwan. Multiple European countries and NATO began increasing their security involvement in the Asia-Pacific region. (Economy 2022) The US and its allies have been taking steps to protect itself from China, which shows that while China may be growing on the global stage, there are still many who oppose this. There is is still some of the “old” world order that is remaining and ready to stop China’s ever growing influence.
Do I personally think there will be a new world order? According to the most recent news, BRICS declaration of a shared currency is one of impracticality. 90% of global trade and foreign exchange markets currently use the US dollar. (Naysmith 2023) This would take a massive amount of work to undo, and with China being the dominant force in BRICS it would presumably want to be the main currency. This obviously wouldn’t go down too well with the other nations. I do believe the US has lost most of its power as a global leader, and China has definitely begun to grow in power especially in their presence in Africa and South Asia. However, I don’t think it will be as easy as China being the new hegemon without any fight from other countries. There is already huge military intimidation being used by China in Asia and specifically in the South China Sea. If the US intervened and rebuilt relations with these countries, I think it would be welcomed.
One reply on “Week 4: Nailah”
Nailah,
Interesting and well-stated views! I agree with your conclusion that it will be extremely difficult for China to engineer the replacement of the dollar with the Renminbi as the global currency, though the Saudis are already accepting Chinese currency in payment for oil. And now, with all the news about the sudden weakness of the Chinese economy and what that portends for its economic prospects over the next few years at least, there is even LESS likelihood that it will succeed.
Much has been written as well about the negative aspects of China’s “Belt and Road Initiative,” beginning with the fact that much of the foreign assistance it has offered is actually loans not grants in aid. And many of the countries to which the loans have been given have subsequently defaulted, leaving China owning foreign assets like ports, railroads, etc. This is being viewed as economic exploitation by many countries.
All of that said, and even given China’s aging population and various econonmic problems, it is clearly a rising power. So the US and China will need to come up with a new modus vivendi (way of living together) if they are to avoid a catastrophic war. –Professor Wallerstein