Question

1.1 “The hegemonic transition to China will be conflictual and accompanied by a shift in the normative paradigm”. In light of the above article, critically evaluate this statement and discuss the extent to which China can assume the role of a hegemony in the near future. (10)

Can China assume the role of a hegemony in the near future? Using any other further research, discuss (2-3 pages) whether this is possible.

1.2 Discuss the impact that China would have on the rest of the world economies as a hegemonic leader (15)

China is closely linked to other economies of the world, especially through trade. If China assumes the role of a hegemony, what impact would this have on the economies of the rest of the world? (your discusion must be not leass 2 pages)

1.3 Differentiate between Mercantilist and Liberalist theories, critically analysing the extent of these IPE theories adopted by China. (15)

This is a two-part question. Firstly, highlight the main differences between the Mercantilist and Liberalist theories about 2-3 pages. Secondly, explain how China’s policies have been influenced by these theories over the years about 1-2 pages.

1.4 A recent news article stated that “the much talked about trade war between the US and China is one component of a broader confrontation between the two largest economies in the world’. Discuss the possible reasons for the imposition of trade barriers between China and the US, and the impact this can have on the South African economy (15)

This is also a two-part question. First, provide possible reasons for the imposition of trade barriers between the US and China. Additionally, explain what impact a trade war between the US and China would have on the South African economy, provide 4-5 pages.

Answer 1

First discuss about the artilce pertains that "the hegemonic transition to China will be conflictual and accompanied by a shift in the normative paradigm". Chinese Current President Mr. Xi Jinping made a speech at the 19th Congress of the Chinese Communist party in which he declared that in 2049 especially the 100th Anniversery of People's Republic would be the year will become the power of global leadership. China as a country if they were targeted anything they could have even work hard for get out the prompt result what they want to targeted. According to Xi Jinping Chinese Centrury will began in 30 years China have become reality ahead of time. China Rise began at the end of 20th Century and only interrupted dues to Japan occupation and its civil war.  

Most of modern economic views is that US replaces UK as the world leading power and china will replace the US then first parellels become clear. United Kingdom's actual challenge was not china but it is Germany while American's Actual challenge was soviet Russia. China's three world theory formulated its version one directed against the two prevailing superpowers that also called for a position of leadership for developing countires. There is lot of difference between US and china. Compared to US China is a semi colony operated within its divion. Another differnce is factor endownment. Us have more land and cultivation but few people to use it but in china population become maximum but not enough land for the cultivation compared to US. Another consequence was the emigration of Chinese to South East Asia. where they were becoming the minorities group. In US keen foucs on increasing the productivity of labor but in china focus was increase the productvity of the land only.  

The era of advance industrialisation reveals more parellel. The diplomatic service was in a similar position, as the US was more or less acting as a free-rider. The British Empire secured the global public assets of economic stability and military security, as it had the greatest interests and the necessary resources to do so. The countries late opening has not changed much about the model of a bureaucratic developing state.  When the Europeans divided China up among themselves, US Secretary of State John Hay reacted with the Open Door Note in the expectation that the US, as the most competitive power, would prevail on the Chinese market. However, the “open door” proved no barrier to subsequent involvement in the suppression of the Boxer Rebellion.The second expansion was in the Caribbean, which was to be cleared of Europeans. Cuba, Haiti, the Dominican Republic, Puerto Rico, the Virgin Islands as well as Honduras and Nicaragua on the Isthmus were occupied, annexed or controlled. The real trophy after the intervention in Colombia, which led to the province of Panama being separated from the country, was the leasing of the Canal Zone by the US for 99 years, once the French and the British had been bought out and ousted. The Panama Canal became an intra-American waterway between the continents’ east and west coasts.

China now playing tic to tact policy after four decades 10% growth it is no longer satisfied with just exports and forein investment.  China is becoming more active as it realizes that its time as a free-rider is coming to an end and as President Donald Trump continues to destabilize the liberal world order and the US is no longer willing to ensure international security on its own. Yet, Chinese expansion is not accompanied by any missionary activity. There is no “Yellow Man’s Burden” compelling the Chinese to impose their idea of civilization on the wider world.

The hegemonic transition from the British Empire to the US was peaceful and promised normative continuity. The hegemonic transition to China will be conflictual and accompanied by a shift in the normative paradigm. Yet a “peaceful rise” is but a chimera – the Chinese century promises to be more than a mere continuation of the American century.

Now discuss about the Mercantilist and Liberalist theories

In Merchantilism beliefs in the benefit of profitable trading and commercialisation. Throug this will procure state allocation of resources and benefits. It allow the countries to become powerful. Mercatilism involves government control of the economy

In Liberlism Adam smith proposes that economic liberalism in the inquiry into the nature and causes of the wealth of Nations. Ultimategoal is to enhance the economic welfare and trade is always beneficial. In Liberlism political and economics are both seperated dimentions. It also provide freedom of enterprise also compretition rises increase in product quality.

Main diffentiation between Merchantism Vs Liberalism

In Liberalism Ultimate goal is enhance economic welfare But in Merchantism should have heavy hands on the economy.

Both theory involves goverment control of the economy

In Liberalism Politics and economics are seperate diamentions

In Merchantism involves primary of miltary power.

Mercantilism is setting a system of economic regulations to benefit the state through wealth by trade.

Economic Liberalism is the belief that an economy that is not regulated would benefit the rich and the poor.

Mercantilism allowed certain countries with colonies to rise above the others, particularly England (Navigation Acts). Others included France, Spain, and the Dutch. All the materials from the New World were required to go back to Europe, leading to safe trade and increase in jobs that processed the raw materials.

Economic Liberalism was much slower to take place. This took away the guilds. The idea was only introduced in certain areas; this was not fully used until after the French Revolution in France and even later for Italy and Central Europe.

China Policies influvence both theories

The decline of liberalism as the mainstream that global political value create an opportunity other ideologies to compete the infuence. Looking for another decade china appears to be the sole country with the whole potential to shirink competitive strength disparity between US. People in many countries fear that the current liberalist order may be replaced with one shaped by chinese value. According to Australian former prime minister very soon we will find ourself at a point in history for the first time democratic states will be the largest economy in the world.  Marxism is the official ideology of the Chinese Communist Party, but it has limited influence on actual foreign policy. The Chinese government has stated that Marxism should guide all areas of its work, such that n developing this culture, we must follow the guidance of Marxism, base our efforts on Chinese culture.Although traditionalism is not the Chinese government’s official ideology, scholars of traditionalism and the Chinese government are agreed that foreign policy should be guided by Chinese traditional political wisdom rather than any ideology rooted in Western culture, including Marxism. For instance, in 2011 the government issued the white paper China’s Peaceful Development, which stated unequivocally, ‘Taking the path of peaceful development is a strategic choice made by the Chinese government and people, in keeping with the fine tradition of Chinese culture, the development trend of the times, and the fundamental interests of China.

Reason for Imposition of Trade barriers between US & China

Low Priced consumer goods produced in china has been dominating American Importation over the year. This will help the chinese economy for the boost up. China can manufactured many goods at competitive price its because of living standared is far below than US.To keep export prices low, China buys a large volume of Treasurys. It has become one of the largest lender nations to the United States, currently second only to Japan.

China produce many consumer goods at lower cost than other countries it creates to result in two factors mainly. A lower standard of living which allows the companies to pay lower wages to workers. An exchange rate that partially fixed to the dollars. If the United States implemented trade protectionism, U.S. consumers would have to pay higher prices for their "Made in America" goods, so it’s unlikely that the trade deficit will change. Most people would rather pay as little as possible for computers, electronics, and clothing, even if it means other Americans lose their jobs.China is the world largest population country & also the world largest economy too. It must potct the intrest of whole population.  

Explanation of trade war between China & US effects South African Economy

The trade war between & China was not affected not only with these two countries but also with the whole world the impact is there. In recent years china exploit African Resources taking as much as possible without any regard to the welfare of the local people.  

Amidst the current hype around the prospect of a global trade war, there has been remarkably little analysis and commentary regarding Africa’s position in this equation. After all, the US and China are two of the largest investors in the continent, and China is the biggest trading partner for some of the continent’s most significant economies, including South Africa, Nigeria and Ethiopia. So, whilst Africa comprises a mere 2% of global trade, US-China and US-European trade tensions are of direct relevance to the continent.

Although the continent comprises a seemingly insignificant proportion of global trade, it is not completely immune from the fallout. Indeed, the effects of an escalation will be pronounced, and will potentially have significant second and third round effects on many economies which are already vulnerable and feeling the pinch of the current emerging market sell-off.