Challenge Six: China's Infrastructure Driven-Alliances
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The document discusses China's economy, highlighting its status as the largest economy by nominal GDP and purchasing power parity, its role in global manufacturing, and as a fast-growing consumer market. It also examines issues such as foreign policy, infrastructure finance, loans, grants, joint ventures, resource nationalism, customs barriers, and the significance of the BRICS bank in enhancing infrastructure finance. Additionally, it addresses the political tension arising from indebtedness to China and the subsequent rise of resource nationalism among local countries.
Challenge Six: China's Infrastructure Driven-Alliances
- 2. Philippine Normal University Contemporary World © China’s socialist market economy is the world’s largest economy by nominal GDP and the world’s largest economy by purchasing power parity according to the IMF, although China’s national Bureau of Statistics rejects this claim. © Until 2015 China was the world’s fastest growing major economy, with growth rates average 10% over 30 years. Due to historical and political facts of China’s public sector accounts for more share in the national economy with the burgeoning private sector. © China is a global hub for manufacturing and is the largest manufacturing economy in the world as well as the largest exporter of goods in the world. © China is also the world’s fastest growing consumer market and second largest importer of goods in the world. China is a net importer of service products.
- 4. Philippine Normal University Contemporary World Foreign Policy -Plan of action adopted by one nation in regards to its diplomatic dealings with other countries. Foreign policies are established as a systematic way to deal with issues that may arise with other countries. Infrastructure Finance - Infrastructure finance refers to the basic fundamental needs of any business or nation.These are the building blocks needed for things to run properly.An example being towns needing roads for transportation purposes. Loans - An arrangement in which a lender gives money or property to a borrower, and the borrower agrees to return the property or repay the money, usually along with interest, at some future point(s) in time. Usually, there is a predetermined time for repaying a loan, and generally the lender has to bear the risk that the borrower may not repay a loan (though modern capital markets have developed many ways of managing this risk). Grants -a sum of money given by an organization, especially a government, for a particular purpose. synonyms: endowment, subvention, award, donation, bursary, allowanace, subsidy, contribution, handout, allocation, gift; scholarship Joint Ventures - a commercial enterprise undertaken jointly by two or more parties that otherwise retain their distinct identities.
- 5. Philippine Normal University Contemporary World Resource Nationalism- Resource nationalism describes a government's effort to gain greater benefit from its natural resources — sometimes to the detriment of private companies. This can range from outright expropriation — when a government takes away a company's assets — to more creeping forms of appropriation, such as higher taxation or more arduous regulation ContractTermination - Cancellation of an entire contract or of its most significant part. Cancellation of a portion of work is called partial termination. Negation of an entire deal or its most important portion. Negation of a part of work is known as partial termination. 'Customs barrier'- Any measure designed to limit international trade. A customs barrier will act to limit the level of trade across international borders by implementing restrictions on imports and/or exports. Governments may impose such restrictions in order to protect a domestic industry from foreign competition, or to limit the export of goods or services deemed vital to a domestic economy's health. BRICS -The New Development Bank (NDB), formerly referred to as the BRICS Development Bank, is a multilateral development bank operated by the BRICS states (Brazil, Russia, India, China and South Africa) as an alternative to the existing American and European-dominated World Bank and International Monetary Fund. Bottleneck- Department, facility, machine, or resource already working at its full capacity and which, therefore, cannot handle any additional demand placed on it. Also called critical resource, a bottleneck limits the throughput of associated resources.
- 6. Philippine Normal University II-3 BEE Students
- 9. Philippine Normal University Contemporary World China has been making its way up.Through building the physical transportation and other infrastructures in key markets, it has built its roots in different countries both inside and outside Asia.These are layoff of complementarities or “infrastructure alliances” rather than genuine political affinities. 1. China has massively increased its foreign direct investment and loans to countries where it seeks to enhance commodities particularly by investing infrastructure. E.g. China’s periphery, in the Indian Ocean, In Africa, and Latin America. China has invested $50-100 billion as initial capitalization for the new multilateral institutions to expand infrastructure finance activities such as the BRICS Bank, the Asian Infrastructure Investment Bank, the Silk Road Economic Belt, and other regional instruments. 2. Heavy indebtedness to China resulting in in defaults and political tension and expropriation practices. As a result, local countries stand up to China and engage in resource nationalism through contract termination or the nationalization of jointly owned infrastructure assets, that resulted in political tension.
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