EIRP Proceedings, Vol 6 (2011)
China’s Strategic Investments and Its Relations with Developing Economies
Abstract
2010 brings news regarding China's economic strategy. It has strengthened its trade relations with
emerging economies, making significant investments, plus significant imports and exports, proving again that
it is the first commercial power in the world. China, considered being "the manufacturer of the world", along
with Brazil and Russia, major exporters of raw materials, and India, the country which offers the cheapest
technology services, has made the world organization, named as BRIC. In 2009, China has consolidated its
position as the main trading partner with Brazil, a position that enabled it in 2010 to become the largest
investor in the Brazilian territory. One of the most important Chinese strategies is the monetary one, through
which China is trying to grow internationally Yuan’s importance, reducing the dependence on the dollar by
driving autonomous trade flows. It is expected that Yuan will become the main currency in Asia, main goal
that will be achieved by the constitution of large reserves of Yuan on the Asian territory. Knowledge of
Chinese economic policy and relations with emerging economies is essential, since 2010 shows the economic
power of this nation, the largest trading power in the world, which has led the economists to study China's
economic situation. We used for this study, data extracted from UNCTAD and ASEAN’s reports from 2010,
plus various U.S. studies on China's geostrategic position. China’s geostrategic position is an important one,
especially compared with the other BRIC countries, making energy investments in the Middle East, strategy
that was adopted also by India and Russia; so Russia and China created ESPO project, Eastern Siberia -
Pacific - Ocean, through which China is making huge investments in energy and Russia is trying to stand out
for European markets. Through this paper, we tried to evidence China’s financial and trade relations with
USA, European Union and emerging economies, in the context of a severe economical crisis, named by
Nouriel Roubini in his book, White Swan.
emerging economies, making significant investments, plus significant imports and exports, proving again that
it is the first commercial power in the world. China, considered being "the manufacturer of the world", along
with Brazil and Russia, major exporters of raw materials, and India, the country which offers the cheapest
technology services, has made the world organization, named as BRIC. In 2009, China has consolidated its
position as the main trading partner with Brazil, a position that enabled it in 2010 to become the largest
investor in the Brazilian territory. One of the most important Chinese strategies is the monetary one, through
which China is trying to grow internationally Yuan’s importance, reducing the dependence on the dollar by
driving autonomous trade flows. It is expected that Yuan will become the main currency in Asia, main goal
that will be achieved by the constitution of large reserves of Yuan on the Asian territory. Knowledge of
Chinese economic policy and relations with emerging economies is essential, since 2010 shows the economic
power of this nation, the largest trading power in the world, which has led the economists to study China's
economic situation. We used for this study, data extracted from UNCTAD and ASEAN’s reports from 2010,
plus various U.S. studies on China's geostrategic position. China’s geostrategic position is an important one,
especially compared with the other BRIC countries, making energy investments in the Middle East, strategy
that was adopted also by India and Russia; so Russia and China created ESPO project, Eastern Siberia -
Pacific - Ocean, through which China is making huge investments in energy and Russia is trying to stand out
for European markets. Through this paper, we tried to evidence China’s financial and trade relations with
USA, European Union and emerging economies, in the context of a severe economical crisis, named by
Nouriel Roubini in his book, White Swan.
References
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