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By APD writer Alice
China is expected to have more favorable conditions to realize its long-term goals when US pressure and intervention cool off.
While the rest of the world continues to grapple with the Covid-19 pandemic, China, where new infections have been kept low for months, is rapidly fueling and reviving its economy and pursue long-term political goals. One reason for China to comfortably realize its strategic goals is the chaotic transition of power in the US. The period from when the election results are announced to the inauguration of the US President often creates policy chaos and may lead to division. The chaos increased with President Donald Trump and his Republican allies refusing to recognize the victory of Democratic rival Joe Biden.
The climax occurred on June 6, when demonstrators supporting President Trump invaded the Congress hall to disrupt the confirmation of Joe Biden as the next president, causing an unprecedented riot on Capitol Hill. With the current turbulence, leaders in Washington are unlikely to have enough time to pay attention to issues beyond the US border, experts said.
Moreover, China recently reached a large investment agreement with the European Union (EU) that is capable of undermining Washington's influence when confronting Beijing. Hong Kong police also arrested dozens of activists in the special region in accordance with the national security law enacted by Beijing last June. Both recent actions show that China is rising up against the rest of the world and is trying to capitalize on the current turmoil in Washington to make its dream of becoming the world’s No. 1 economy come true.
China is also affirming its power after signing a number of free trade agreement, notably the Regional Comprehensive Economic Partnership (RCEP).
The RCEP will help China boost domestic production and exports, as well as create more jobs. It will also help the country’s overseas investment more favorable. Statistics from the Asia-Pacific and Global Strategic Research Institute under the Chinese Academy of Social Sciences show that in 2018, the country's investment in 14 RCEP member countries reached $16 billion, accounting for 9% of China's total outward investment.
Along with the implementation of the agreement, China can shift investment in manufacturing industries with outstanding competitive advantage to other countries in the region, while focusing its limited domestic resources on industries with higher value and technical content, promoting the transformation and upgrading of industries in the country.
In addition, the deal is expected to support the internationalization of the renminbi. Currently, ASEAN is the main channel for China to realise this plan. Many countries in ASEAN and in the region choose the renminbi as a trading currency. As a result, the investment and reserve functions of this currency will be more and more clear.
China’s successes in controlling the Covid-19 pandemic have also contributed to raising its position in the world. Right after the virus first emerged in late 2019, and spread rapidly in January and early February, the Chinese government responded with strong measures to curtail its spread.
Through mass testing, quarantine measures and physical distancing, Chinese authorities managed to control the virus. Total reported cases stabilized at just over 80,000 in late February and there are now fewer than 1,000 active cases, making China lead subsequent global economic recovery.
Now, the Chinese economy has mostly re-opened, at a time when much of the rest of the world is facing the worst of the virus. While many governments are in crisis management, the Chinese government is now looking ahead towards putting the economy back on track for 2021 and beyond.
As the second largest economy, China’s success will be instrumental in revitalizing the global economy as a whole – and with the virus under control and ambitious economic policies set to be released, China appears well-positioned to accomplish its goals.
(ASIA PACIFIC DAILY)
