Globalization 3.0 calls financial analyst Sara Hsu China´s ambitious ambitious expansion program One Belt, One Road, in TripleCrisis. Backed by over a trillion US dollar in funding, the program covers 900 projects in 60 countries. Globalization 3.0 is here to stay, says Sara Hsu.
While China’s expansion of the Silk Road and Silk Maritime Road does not directly challenge the power of the United States, some Americans have viewed this program as a threat. American analysts have viewed the Silk Roads as a challenge to US dominance overseas. American officials have opposed the cooperation of Western nations with China’s Asian Infrastructure Investment Bank. Even President Obama has opposed China’s expansion of trade overseas. The fact is that a stronger China will carry more influence, which may detract from the hegemony normally imposed by the US. China’s increased economic integration with the rest of the world in particular will create a dependency on the eastern nation that will enhance its global legitimacy.
To date, much of the globalization process has been a force that has been dominated by the United States, and the fear that China will challenge this power has been underscored in the media. Expansion of Chinese firms overseas, financing of critical infrastructure and pipeline projects by Chinese institutions, cooperation of Chinese researchers and firms on technological development and implementation, and improvement in diplomatic and civil relationships between Chinese and foreign individuals and institutions all stand to greatly promote China’s influence across Europe, Asia and Africa. As China’s reach expands, American economic dominance will have a rival, and the potential loss of American financial and/or political support will carry less weight. The RMB will become more important, reducing dollar supremacy.
If Globalization 2.0 was, as Thomas Friedman has asserted, (Western) companies globalizing, Globalization 3.0 is non-Western forces globalizing. Globalization 3.0 looks more international, more cooperative and less one-sided. It is hoped to be a more peaceful and inclusive globalization. This changes the power balance between the global North and the global South. If there was any question that the face of globalization is changing, China’s dramatic One Belt One Road program reinforces the fact that Globalization 3.0 is here to stay.
Are you interested in more experts on China´s outbound investments? Do check our list here.