China Moving into Central Stage as World Super Power

Trump and Xi

Recent military exercises near Korea Peninsula has shown a small step for China’s political move but giant Leap to the central stage for world super power both politically and economically.  The whole world has been waiting and watching how the US can help lowering the war threat initiated by missile test launched by North Korea. However, restrained and entangled by its own internal affairs and flip-flop foreign policy, US realizes it could not do anything to contain North Korea to continue its nuclear threat.

President Trump has been vocally calling out China for help. He said China could do much more to stop North Korea for its continuous missile test. With that call out, aside from advocating earlier China will be neutral if in case North Korea lunches any attack to US or its allies, China released another warning to North Korea by lowering its import of coal from North Korea. With such moves, it was not enough to restrain North Korea, it still has launched another deadly weapon test ~ its sixth underground hydrogen bomb. This bomb has even generated tremors to North Eastern part of China territory.

North Korea Continual Threat

Analysts have been expecting North Korea will continue another military test to show case its military power during its National Day this Saturday 9th September 2017. If this happened, it will bring Korea Peninsula crisis even more to its core.

Missile Test
North Korea would likely continue its Balistic Missile test soon

However, with this China military exercises in proximity with North Korea territory, deterring result would be possibly more effectively this time than any other US way of “fire and fury”.

Traditionally, North Korea has been useful for China as bargaining tool with the US superpower.  Analysts have been saying controlling North Korea is not in the interest of China foreign policy.  If China were to do that, the burden of world policing will be shifted upon China’s shoulder. But with recent development, the ball game of the world politic has changed drastically. China is highly looked upon by Trump after his first meeting with President Xi in Florida and the subsequent calling each other over the phone has given them good understanding and cooperation.

If the Korea Peninsula crisis has been successfully suppressed this time, China would be highly lauded by the world. US in particular will be greatly indebted for China’s “help”.

Economic and Political Couplet

Historically, economy and politic often went hand in hand regardless whichever period of time and geographical-political environment.  From recent colonial era to modern period, there was both a political and economic shift from Europe to US, particularly after World War II. US has been the super power both political and economic ever since after then. Even though there were political or military races between US, China and USSR during the Cold War period, but US has eventually turned out to have an upper hand because the economic superiority. US has more coverage in political influences in most part of the world though neo colonialism then the other two. In other words, whoever has the power wins the bread.

With the recent development as Trump for the new US President, he doesn’t seem to hold this couplet principle of political and economic. His policy as stated is to reduce military expenditure worldwide, or even ask respective countries to pay for their expenses.

For all the previous US presidential administrations, military expenses cut had never been a priority.

Budget Cut
With previous presidential administration, military expenses cut had never been a priority.

In fact military expansion through invasion was even used as a strategy for world conquer and bringing in economic advantages.  With Trump currently, he is not only relinquishing political responsibility over North Korea crisis, but economic advantages in a long run as well. China though as seen reluctant to accept this role is more than happy to continue with what US has left behind.

As investors, we are fortunate to see these changes~ world super power shift in a peaceful, smooth and natural manner.  We do not hope to see World War III happen to make the shift effective though.

There might still be many road bumps and hurdles before China’s economic future, such as debts, corruption, imbalances in development and others, the shift is however irrevocable. With the Chinese will power and zeal, it’s only a matter of time to see this a reality.

 

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