Economy: China is Reshaping the Global Order

The American and Western hegemony is being challenged by the rise of China. As Beijing continues to strengthen its economic influence across the globe, perceptions vary significantly depending on the income levels of nations. This analysis explores how China is reshaping the global economic landscape and the contrasting reactions from different regions of the world to this evolution.

The perception of Chinese economic influence

China, already feared by the EU, exerts considerable economic influence worldwide, according to a recent survey by the Pew Research Center conducted in 35 countries. However, this influence is perceived differently depending on the income level of nations.

In middle-income countries, 47% of respondents view this influence favorably, while in high-income countries, 57% perceive it negatively.

In the United States, for example, about 75% of Americans judge China’s economic impact negatively.

Since 2019, this negative perception has increased in countries like Argentina, Brazil, Israel, Japan, South Korea, and Tunisia.

This gap in perceptions highlights the concerns raised by the environmental practices and treatment of workers by Chinese companies, particularly in middle-income countries.

Chinese investments and their impact

The launch of China’s Belt and Road initiative in 2013 marked a turning point in its global investment strategy, reaching nearly 3 trillion dollars in foreign direct investments today. This initiative has enabled many countries to receive funding for infrastructure projects, but it has also sparked controversies.

While populations in countries like Thailand (81%), Kenya (80%), and Bangladesh (79%) view these investments positively, concerns remain about their environmental and social impact. They resemble the same accusations against bitcoin (BTC).

For example, in Ghana and South Africa, a majority of people believe that Chinese companies do not sufficiently protect the environment.

Moreover, in several countries, the treatment of local workers by these companies is criticized. As one expert points out:

« The challenge for Chinese companies is to prove that they can be good corporate citizens, not only through their investments but also through their ethical practices. »

The global economy and territorial disputes in Asia-Pacific

China’s territorial disputes in the Asia-Pacific region exacerbate geopolitical tensions, particularly in the South China Sea and around the Spratly Islands. These conflicts greatly concern neighboring countries.

In the Philippines, for example, 91% of people are worried about the border tensions with China. Incidents like the collision between Chinese and Filipino ships amplify these concerns. In Australia, Japan, Malaysia, and South Korea, about three-quarters of those surveyed share these apprehensions.

However, in countries like Malaysia and Thailand, a majority believe that China contributes to global peace and stability.

These contrasting opinions illustrate the complexity of relations with China in this strategic region.

Key points:

• The perception of China varies greatly depending on the income levels of countries; 
• Chinese investments are viewed positively in some countries but raise environmental and social concerns; 
• Territorial disputes in Asia-Pacific raise concerns about regional stability.

China is increasingly positioning itself as a major economic player, altering global dynamics. However, as this analysis by our colleague points out, the future of global economic relations will depend on China’s ability to address the environmental and social concerns related to its investments.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.