China’s growing economy is one of the many apprehensions of several nations including those, which belong to the exclusive group whose moniker is “super power” Because of the great red’s success, the political landscape in certain areas of the world are changing, putting the influence of the westerners at peril.
One of the most surprising changes brought by China’s domination in terms of economic strengths is its proposed Asia Infrastructure Investment Bank. Not only does it rival the IMF, but also it puts itself in a situation where it could easily influence other developing nations. Despite this however, the chief of the International Monetary Fund, Christine Lagarde, is looking forward to co-operate with the China-lead organization.
The emergence of AIIB, which already has 30 members, saw a strong response from the United States. According to the Americans, the institution of it not only precludes the essence of the World Bank but it can be used as leverage by China to garner what it wants. The white house also issued a statement where it hopes other traditional superpowers like the United Kingdom can use its voice to push for adaptation of higher standards- a statement that directly attacks the Chinese.
According to the IMF chief, China plays a vital role in the worlds’ call for a stronger global economy. After more than 30 years of continuous development of its economy based on investments done by the state, China is looking for ways to transform its economic growth to a self-sustaining one derived from domestic consumption. Government officials also admitted that their economy is seeing signs of slowing down.
Lagarde stated, in her speech, at the yearly China Development Forum at the Diaoyutai State Guesthouse in Beijing that “Now indeed, China navigates this new normal of its own economy; it contributes more to the global common good and to economic and financial stability as well.”
She also added that the “The fate of the Chinese economy and the fate of the global economy are intertwined, and the growth that is slightly slower than what we have witnessed so far is perfectly legitimate,”
Due to an underwhelming property market at home and diminish global demand, Chinese economy is slowing down at a rapid rate. During the early parts of this month, the communist state set a 7 percent target for their growth. The IMF also issued its own forecast that only states a 6.8 percent growth.