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China pivotal role in the world economy

When China joined the World Trade Organization in 2001, it was the start of a new era of globalization. In 2005, the economic bloc of emerging economies was created – the BRICS (Brazil, Russia, India, China and South Africa). Since its inception, China has had a pivotal role in the bloc. By 2030, if China continues to grow rapidly, and the U.S. continues growing the way it is, China will catch up with the U.S. In 2017, China’s global trade was over $630 billion, 300% times bigger than the US ($2 billion from 1979.) “Foreign trade is an important part as well as a driving force of the national economy,” said the Chinese Premier Li Keqiang in 2014 when chairing a meeting at the State Council. Finally, China confirmed its success of continued reforms in foreign trade, and maintained its ability to sustain a healthy rate of export growth.

The Chinese government is astute because they do not, as they say, put all their eggs in the same basket. Although China considers its exports a way to leverage the economy, it also has a long-term vision, and it is investing in other areas – such as infrastructure in many African countries. China is the largest contributor of aid to sub-Saharan Africa. In contrast with other aid contributors, China’s aid targets infrastructure. Chinese foreign policy towards Africa underwent significant reforms in the 1990’s. China provides loans to Africa through an economic cooperation mechanism that helps African countries uplift their economies and boosts Chinese financial institutions such as China’s Development Bank, China Export-Import Bank, and China Agricultural Development Bank.