China eyes global economic leadership as U.S. turns inward

In this photo taken Wednesday, Nov. 23, 2016, Kenyan laborers and a Chinese foreman work to finish the construction of an existing bridge that goes across a corner of Nairobi National Park in Nairobi, Kenya. A controversial Chinese-built railway project involving an even larger 6km bridge that would go all the way over the beloved protected area in Kenya’s capital has divided conservationists in this East African country. (Photo: Ben Curtis, AP)

 

This year, a 300-mile railway will begin slicing through Kenya, cutting travel time between the capital, Nairobi, and one of East Africa’s largest ports, Mombasa, from 12 to four hours and breeding hopes of an economic and tourism revival in the region.

The country’s most significant transportation project since its independence in 1963 is being built courtesy of China.  China Road and Bridge, a state-owned enterprise, leads construction of the $13.8 billion project, which is financed nearly 100% by the Export-Import Bank of China.

The railroad is one of a host of infrastructure projects China spearheads around the world in an ambitious quest to reinforce its emergence as the world’s next economic superpower while President Trump turns his back on globalization.

Diplomat says China would assume world leadership if needed

 

• China’s response came over Trump’s pledge to put “America first”.
• In Davos, President Xi Jinping portrayed China as leader of a globalised world.
• China is the world’s second-largest economy after the US.

BEIJING: China does not want world leadership but could be forced to assume that role if others step back from that position, a senior Chinese diplomat said on Monday, after US President Donald Trump pledged to put “America first” in his first speech.

Zhang Jun,, director general of the Chinese foreign ministry’s international economics department, made the comments during a briefing with foreign journalists to discuss President Xi Jinping’s visit to Switzerland last week.

China’s Xi Jinping Speech Seen as Move to Fill Global Leadership Role

China’s President Xi at the World Economic Forum, in Davos. He portrayed further globalization as a historical trend and outlined China’s contributions that had benefited the rest of the world. PHOTO: LAURENT GILLIERON/AGENCE FRANCE-PRESSE/GETTY IMAGES

 

DAVOS, Switzerland—Chinese President Xi Jinping’s strong defense of globalization at a speech at the World Economic Forum was depicted here as an effort to fill a vacuum being created by the U.S. stepping back from a global leadership role.

Mr. Xi was seen as reacting to growing concerns that the incoming U.S. administration of Donald Trump would shift the world’s largest economy toward protectionism.

Washington, China, and the Rise of the Renminbi: Are the Dollar’s Days as the Global Reserve Currency Numbered?

Abstract

The U.S. dollar has dominated the international monetary system since the end of World War II. While the U.S. economy has generated weak growth since 2009, and accumulated a large sovereign debt, the dollar’s status as an international medium of exchange and reserve currency has not diminished. The Chinese renminbi (RMB), however, barely visible in international trade or financial flows just three years ago, appears to be blossoming. China is now the world’s largest trading nation, and more corporations, particularly in Asia, are beginning to invoice their business in RMB. The Chinese regime is calling for a reform of the international monetary system to expand the internationalization of the RMB. Speculation has begun about whether the U.S. dollar could be supplanted by the RMB. Such a development would jeopardize the enormous economic advantages that the U.S. has enjoyed by possessing the world’s dominant currency. Moreover, it would signal a relative decline in American prestige and global leadership. The answer to the dollar’s potential decline is not to seek obstacles to China’s or any other nation’s economic success, but to change fiscal and monetary policies at home in order to maintain the dollar’s competitiveness.The U.S. dollar has dominated the international monetary system for approximately 70 years. While the U.S. economy has generated weak growth over the past six years and accumulated a large sovereign debt, the dollar’s status as an international medium of exchange and reserve currency (currency held by foreign central banks) has defied the odds and has not diminished.

Xi Jinping may be more ambitious than Mao: Lee Teng-hui

China’s president, Xi Jinping, may be even more ambitious than the country’s late founder Mao Zedong when it comes to challenging the United States for global leadership, Taiwan’s first directly elected president said Thursday.

“Do you really believe Xi wants to democratize?” Lee Teng-hui asked rhetorically in response to a student from Soochow University in Taipei who asked whether Taiwan would consider unification with the mainland if Beijing underwent political reforms.

What Xi wants is more power and influence over world affairs, Lee said, and aims to replace the US dollar with the renminbi as the global trade settlement currency.

Germany’s Dramatic and Alarming Foreign Policy Pivot

2014 could be the year Germany replaces America as the world’s unilateral superpower.

Germany’s relationship with the international community in recent years has been one of unrequited affection. America and other world powers have been begging Germany to get more involved in world affairs and to exert more global leadership. But Berlin has responded slowly and coyly, with a reluctance many find curious and vexing.

That changed in January 2014.