CSS 2012 Solved Current Affairs Past Paper | Impact of economic development of China on World Order
The following question of CSS Current Affairs 2012 is solved by Sir Ammar Hashmi, the best Current Affairs Coach, on the guided pattern of Sir Syed Kazim Ali, which he taught to his students, scoring the highest marks in compulsory subjects for years. This solved past paper question is uploaded to help aspirants understand how to crack a topic or question, write relevantly, what coherence is, and how to include and connect ideas, opinions, and suggestions to score the maximum.
Question breakdown
In this question, we are asked to discuss various impacts of China’s economic development on the World Order.
Outline
1-Introduction
2-A brief overview of the economic development of China
3-Impact of the economic development of China on the World Order
- ✓Shift from Unipolar to Multipolar World Order
- ✓Shift in Global Economic Power
- ✓Challenge to U.S. Dollar Dominance as a Reserve Currency
- ✓Technological and Innovation Leadership
- ✓Geopolitical and Security Implications
- ✓Energy and Resource Diplomacy
4-Conclusion
Answer to the Question
Introduction
The global balance of power is shaped by economic shifts, with China emerging as a dominant force in the international system. Over the past few decades, China’s rapid economic growth has transformed it from a developing nation into the world’s second-largest economy. This rise has significantly impacted the world order, challenging Western dominance in multiple domains. China’s expanding influence has led to a shift from a unipolar to a multipolar world order, a reconfiguration of global trade networks, and an increasing challenge to the U.S. dollar’s global supremacy. Additionally, its leadership in technological advancements and resource diplomacy has significantly reshaped global economic and security dynamics. As China continues to assert its economic and strategic influence, the world order is witnessing a profound transformation, moving towards a more multipolar and interconnected system.
A brief overview of the economic development of China
China’s economic development has been characterized by remarkable growth and transformation over the past few decades. Since implementing market reforms in the late 1970s, China has evolved from a primarily agrarian society to the world’s second-largest economy and a global manufacturing giant. The country’s GDP growth averaged around 10% annually for many years, lifting hundreds of millions out of poverty. However, recent years have seen a moderation in growth rates, with the government targeting 5% growth in 2023. China’s economic model is shifting from an export-led growth and heavy investment approach towards a more balanced one, focusing on domestic consumption, services, and high-tech industries. The “Made in China 2025” initiative, launched in 2015, aims to upgrade China’s manufacturing capabilities in key sectors. The country is now focusing on “high-quality development,” emphasizing innovation, sustainability, and self-reliance in critical technologies, while also navigating complex global economic relationships and striving to maintain its position as a major player in the world economy.
Impact of economic development of China on World Order
The economic development of China has a significant effect on the existing world order. These are as follows.
- Shift from Unipolar to Multipolar World Order
China’s rapid economic rise has significantly contributed to the shift from a US-dominated unipolar world order to a more multipolar system. From a mere $150 billion GDP in 1978, at the start of its economic reforms, to an $18 trillion economic giant by 2024, now ranking as the world’s second-largest economy after the United States (IMF). This remarkable growth has diminished America’s relative economic dominance, creating space for middle powers, such as the European Union, India, and Russia, to cast a more significant influence in global affairs. The resulting multipolarity has made international relations more complex, with China emerging as a counterweight to Western leadership in institutions such as the UN and WTO while also fostering alternative economic and political alliances through initiatives like BRICS. This economic rebalancing represents one of the most profound transformations in the global order since the end of the Cold War.
- Shift in Global Economic Power
China’s rapid economic growth has significantly changed the global economic landscape, challenging Western dominance. According to the International Monetary Fund (IMF), China surpassed the United States as the world’s largest economy in purchasing power parity (PPP) terms in 2014. Additionally, the World Bank reports that China now accounts for 18% of the global GDP, making it a significant player in international economic affairs. This shift has enabled China to play a more influential role in global financial institutions, trade agreements, and economic policymaking. As a result, the world order is gradually transitioning towards a more multipolar economic system, with China at the center of global financial and trade networks.
- Challenge to U.S. Dollar Dominance as a Reserve Currency
China’s economic rise has led to increasing efforts to reduce global reliance on the US dollar, challenging its dominance in international trade and finance. The Belt and Road Initiative (BRI), spanning over 140 countries, has promoted the use of the Chinese yuan in cross-border transactions, with several trade deals now settled in yuan instead of dollars. Moreover, the BRICS nations (Brazil, Russia, India, China, and South Africa) are actively working on alternatives to dollar-based trade, with China spearheading initiatives like the Cross-Border Interbank Payment System (CIPS) as an alternative to SWIFT. As more countries drift away from the US dollar, China’s push for a multipolar currency system is gradually reshaping the financial aspect of the global order, reducing Western economic leverage over international markets.
- Technological and Innovation Leadership
China’s economic growth has positioned it as a global leader in technology and innovation, reshaping the world order in science and industry. As of 2023, China accounted for over 40% of global AI research papers and led the world in 5G deployment, with more than 3 million base stations, surpassing the combined total of the U.S. and Europe. Furthermore, Chinese companies such as Huawei, Tencent, and Alibaba dominate sectors, including telecommunications, e-commerce, and cloud computing. This rapid technological advancement has not only increased China’s economic influence but also given it a strategic edge in shaping global technology standards, reducing Western dominance in the digital economy.
- Geopolitical and Security Implications
China’s economic success has enabled a significant expansion of its military capabilities, shifting global power dynamics. According to the Stockholm International Peace Research Institute (SIPRI), China’s defense budget reached $293 billion in 2023, making it the second-largest military spender after the United States. Additionally, through initiatives such as the String of Pearls strategy, China has established key naval bases in the Indian Ocean, thereby strengthening its maritime influence. This growing military presence, coupled with China’s assertiveness in the South China Sea, is reshaping regional security structures and challenging traditional Western alliances in Asia, signaling a shift in global strategic balance.
- Energy and Resource Diplomacy
China’s dominance in global trade has restructured supply chains and economic dependencies worldwide. As the world’s largest exporter, with $3.4 trillion in exports in 2023, China has integrated itself deeply into the global economy, making many nations reliant on its manufacturing and supply chains. Initiatives like the Regional Comprehensive Economic Partnership (RCEP), the largest trade bloc covering 30% of global GDP, have further solidified China’s economic influence. As global trade shifts towards Asia-centric networks, China’s role as a trade hub is diminishing the economic impact of Western economies, reinforcing its central position in the evolving world order.
Conclusion
China’s economic development has profoundly altered the global order, challenging Western dominance and fostering a more multipolar system. Its rise as a global economic powerhouse has shifted trade dynamics, reduced reliance on the U.S. dollar, and positioned China as a leader in technology and infrastructure development. Additionally, its influence in global institutions, military expansion, and energy diplomacy have further strengthened its role in shaping international affairs. While this transformation presents opportunities for economic cooperation and innovation, it also raises geopolitical tensions and competitive rivalries. Moving forward, the evolving world order will likely be characterized by economic interdependence, strategic competition, and the necessity of diplomatic engagement to maintain global stability.
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