US global economic leadership: Responding to a rising China
International Studies / No 1 (34)
Written by Tristram Sainsbury
International Studies - THE EAST SEA ISSUES
The rise of the Chinese economy means that China and the United States must share a role, although not necessarily an equal one, in shaping global economic rules. As its economic weight grows, China is seeking a bigger role in global economic governance. While the country’s uncertain growth prospects mean that China is unlikely to be the world’s sole economic leader, the United States will have to share global economic leadership with China, even if unequally. So far, however, the United States is not adapting to this eventuality very well. Washington’s mishandling of its response to the Asian Infrastructure Investment Bank, Congress’ failure to ratify IMF reform, and the decision to exclude China from the Trans-Pacific Partnership suggest that the United States is struggling to accommodate China’s desire to have a greater say in the way that the global economy is run. As shown by the issue of climate change, if Washington and Beijing can work together, it has the potential to lead to positive outcomes for the global economy. But if the United States does not work with China, it may well undermine its own leadership position over time.
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