Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
Virgin Media Fibre Broadband Installation - What to Expect, Quality of Wiring, Service etc. - 21st Jun 21
Feel the Inflationary Heartbeat - 21st Jun 21
The Green Superfuel That Could Disrupt Global Energy Markers - 21st Jun 21
How Binance SCAMs Crypto Traders with UP DOWN Coins, Futures, Options and Leverage - Don't Get Bogdanoffed! - 20th Jun 21
Smart Money Accumulating Physical Silver Ahead Of New Basel III Regulations And Price Explosion To $44 - 20th Jun 21
Rambling Fed Triggers Gold/Silver Correction: Are Investors Being Duped? - 20th Jun 21
Gold: The Fed Wreaked Havoc on the Precious Metals - 20th Jun 21
Investing in the Tulip Crypto Mania 2021 - 19th Jun 21
Here’s Why Historic US Housing Market Boom Can Continue - 19th Jun 21
Cryptos: What the "Bizarre" World of Non-Fungible Tokens May Be Signaling - 19th Jun 21
Hyperinflationary Expectations: Reflections on Cryptocurrency and the Markets - 19th Jun 21
Gold Prices Investors beat Central Banks and Jewelry, as having the most Impact - 18th Jun 21
Has the Dust Settled After Fed Day? Not Just Yet - 18th Jun 21
Gold Asks: Will the Economic Boom Continue? - 18th Jun 21
STABLE COINS PONZI Crypto SCAM WARNING! Iron Titan CRASH to ZERO! Exit USDT While You Can! - 18th Jun 21
FOMC Surprise Takeaways - 18th Jun 21
Youtube Upload Stuck at 0% QUICK FIXES Solutions Tutorial - 18th Jun 21
AI Stock Buying Levels, Ratings, Valuations Video - 18th Jun 21
AI Stock Buying Levels, Ratings, Valuations and Trend Analysis into Market Correction - 17th Jun 21
Stocks, Gold, Silver Markets Inflation Tipping Point - 17th Jun 21
Letting Yourself Relax with Activities That You Might Not Have Considered - 17th Jun 21
RAMPANT MONEY PRINTING INFLATION BIG PICTURE! - 16th Jun 21
The Federal Reserve and Inflation - 16th Jun 21
Inflation Soars 5%! Will Gold Skyrocket? - 16th Jun 21
Stock Market Sentiment Speaks: Inflation Is For Fools - 16th Jun 21
Four News Events That Could Drive Gold Bullion Demand - 16th Jun 21
5 ways that crypto is changing the face of online casinos - 16th Jun 21
Transitory Inflation Debate - 15th Jun 21
USDX: The Cleanest Shirt Among the Dirty Laundry - 15th Jun 21
Inflation and Stock Market SPX Record Highs. PPI, FOMC Meeting in Focus - 15th Jun 21
Stock Market SPX 4310 Right Around the Corner! - 15th Jun 21
AI Stocks Strength vs Weakness - Why Selling Google or Facebook is a Big Mistake! - 14th Jun 21
The Bitcoin Crime Wave Hits - 14th Jun 21
Gold Time for Consolidation and Lower Volatility - 14th Jun 21
More Banks & Investors Are NOT Believing Fed Propaganda - 14th Jun 21
Market Inflation Bets – Squaring or Not - 14th Jun 21
Is Gold Really an Inflation Hedge? - 14th Jun 21
The FED Holds the Market. How Long Will It Last? - 14th Jun 21
Coinbase vs Binance for Bitcoin, Ethereum Crypto Trading & Investing During Bear Market 2021 - 11th Jun 21
Gold Price $4000 – Insurance, A Hedge, An Investment - 11th Jun 21
What Drives Gold Prices? (Don't Say "the Fed!") - 11th Jun 21
Why You Need to Buy and Hold Gold Now - 11th Jun 21
Big Pharma Is Back! Biotech Skyrockets On Biogen’s New Alzheimer Drug Approval - 11th Jun 21
Top 5 AI Tech Stocks Trend Analysis, Buying Levels, Ratings and Valuations - 10th Jun 21
Gold’s Inflation Utility - 10th Jun 21
The Fuel Of The Future That’s 9 Times More Efficient Than Lithium - 10th Jun 21
Challenges facing the law industry in 2021 - 10th Jun 21
SELL USDT Tether Before Ponzi Scheme Implodes Triggering 90% Bitcoin CRASH in Cryptos Lehman Bros - 9th Jun 21
Stock Market Sentiment Speaks: Prepare For Volatility - 9th Jun 21
Gold Mining Stocks: Which Door Will Investors Choose? - 9th Jun 21
Fed ‘Taper’ Talk Is Back: Will a Tantrum Follow? - 9th Jun 21
Scientists Discover New Renewable Fuel 3 Times More Powerful Than Gasoline - 9th Jun 21
How do I Choose an Online Trading Broker? - 9th Jun 21
Fed’s Tools are Broken - 8th Jun 21
Stock Market Approaching an Intermediate peak! - 8th Jun 21
Could This Household Chemical Become The Superfuel Of The Future? - 8th Jun 21
The Return of Inflation. Can Gold Withstand the Dark Side? - 7th Jun 21
Why "Trouble is Brewing" for the U.S. Housing Market - 7th Jun 21
Stock Market Volatility Crash Course (VIX vs VVIX) – Learn How to Profit From Volatility - 7th Jun 21
Computer Vision Is Like Investing in the Internet in the ‘90s - 7th Jun 21
MAPLINS - Sheffield Down Memory Lane, Before the Shop Closed its Doors for the Last Time - 7th Jun 21
Wire Brush vs Block Paving Driveway Weeds - How Much Work, Nest Way to Kill Weeds? - 7th Jun 21
When Markets Get Scared and Reverse - 7th Jun 21
Is A New Superfuel About To Take Over Energy Markets? - 7th Jun 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

U.S. vs China: The Great Game for New World Order

Politics / New World Order Apr 15, 2009 - 06:17 PM GMT

By: Global_Research

Politics Best Financial Markets Analysis ArticlePark Sang-seek writes: The G20 summit in London ended with an optimistic note. But the final communique was a compromised document between the forces to preserve the basic architecture of the existing financial order and the forces to replace it with a new one: the first led by the Anglo-American partnership and the second by the BRICs with the support of the non-participating developing world. The Franco-German coalition took the intermediary position.


Notwithstanding this division, the most interesting phenomenon was an invisible struggle between the United States and China. From the perspective of international politics, the most serious issue in the 21st century will be whether China will challenge the U.S. dominant position in the international order, and if so, when and how it will. We can detect China's true intentions and strategy for a new international order by examining the actions and policies it has been taking in dealing with the international financial crisis.

The game in the 21st century financial crisis is actually a game between the United States and China. It is reminiscent of the Great Game between the United Kingdom and Russia in the 19th century. In that Great Game Britain staged all-out military and diplomatic moves to contain Russia's attempt to control Central Asia, particularly India.

U.S. President Obama said, shortly after the international financial crisis, that we are entering the beginning of the end of the crisis. I would say that we are entering the beginning of the end of U.S. hegemony in the world. The United States was one of the superpowers during the cold war period and has been the hegemonic power in the world since the end of the cold war.

There are similarities and differences between British hegemony and American hegemony. Both hegemonic powers were able to contain the challenger (Russia/ the Soviet Union) and other rising great powers opposed the challenger. Moreover, both hegemonic powers were in control of the international financial order and the international political and security order, both of which are two basic requirements for global hegemony. One difference is that Britain used naked military power to dominate the world, but the U.S. has alternated soft and hard power and relied on nuclear parity.

Now we are witnessing the beginning of the end of the international economic order based on the Bretton Woods financial institutions as well as the international security order sustained by American military superiority. The G20 summit signaled the beginning of a new Great Game between the United States and China. This new Great Game has started with a money game, but it will eventually develop into a full-pledged political game.

Let us read the signs indicating this. In a hierarchical international system, the hegemonic power maintains a constant watch on the rising great powers. Historically, rising great powers are divided into the powers satisfied with or tolerating the status quo and those against it. When a rising power challenges the status quo, other great powers may support or oppose it. In most cases, the challenger acts alone and is defeated.

In the United States, expert opinions are divided on the true foreign policy goals of China. Some argue that it will challenge U.S. hegemony singularly or in alliance with other great powers, and others hold that it will seek peaceful coexistence, believing that the U.S. will not be able to maintain its hegemonic position for long. Still others aver that it will seek a multipolar world, with China in control of East Asia. We can conceive of other scenarios after U.S. hegemony.

The international financial crisis has provided China with both a crisis and an opportunity: the economic recession for China and the restructuring of the unipolar international political order and economic and financial architecture. China leading the developing world and in coalition with some major powers including Russia, France and Germany, have been advocating a multipolar international political and economic order.

This time China, in league with other members of the BRICs and the Franco-German alliance, pushes for the creation of a new international reserve currency replacing the U.S. dollar. If this is realized, the U.S. will lose its hegemony in the international economic order and therefore it has rejected it.

Along with this reform proposal, China, together with major economic powers from diverse continents including Japan, Britain, France, Germany, Russia, the euro zone, Canada, Indonesia, Mexico, and Saudi Arabia, endorses the restructuring of the International Monetary Fund. However, it should be noted that it does not advocate the abolition of the IMF.

It is also interesting to note that France and Germany are more radical than China and other great powers on the agenda items of the G20 summit. Sarkozy demands that the rules for global capitalism be rewritten to conform to the more civilized form of the continental European model. Merkel goes further and calls for the creation of an economic body at the U.N., similar to the Security Council, to judge government policies. She actually advocates a supranational body to supervise international financial transactions.

Concerning the principles of the reform of the international financial order, China does not hesitate to lead the developing world, while on concrete measures, it hovers around the Anglo-American and Franco-German axes. Why does China take such an opportunistic and conciliatory position? The reason can be two-fold: First, it knows time has not yet arrived for China to challenge the hegemonic power, and secondly, its economy is too deeply dependent on the U.S. economy. It is evident that if the U.S. dollar goes down and the U.S. economy collapses, it will lose its investments in the U.S. treasury bonds and its exports will decline drastically, thus deepening its economic recession.

China's grand strategy was established when Deng Xiaoping adopted a new economic policy in the 1970s, and it has not changed. This strategy is to "rise in peace." The question to others is "for what purpose?" No wonder U.S. leaders and China specialists are divided on the proper U.S. China strategy. They talk about confrontation, containment, containment-engagement, engagement and appeasement. Obama seems to be leaning toward engagement.

The lessons Korea should learn from the international financial crisis are first that it is time for Korea to expand its influence in the international economic institutions and it should closely watch the development of the economic strategies of the United States and China, two major game players.

What the whole world should learn for this experience is that globalization has truly changed the nature of international trade and financial activities and international financial institutions, and new rules and mechanisms should be adopted to reflect the changes created by globalization.

Obama's recent remarks at the summit summed it up well: "The voracious U.S. economy can no longer be the sole engine of global growth."

Park Sang-seek is a professor at the Graduate Institute of Peace Studies, Kyung Hee University. - Ed. 

Global Research Articles by Park Sang-seek

© Copyright Park Sang-seek , Global Research, 2009

Disclaimer: The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of the Centre for Research on Globalization. The contents of this article are of sole responsibility of the author(s). The Centre for Research on Globalization will not be responsible or liable for any inaccurate or incorrect statements contained in this article.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in