The 20th century has been called “The American century,” and the period 1815 to 1914 was “Britain’s imperial century.” That’s when one country is dominant in political, military and economic terms.
Is the 21st becoming “the Chinese century”?
There have been billions of words written over the last two decades about China and its increasing influence around the globe. Most of the commentary is, at the most, negative about China’s planetary expansion and at the least, cautious about China’s role on the world stage. Virtually every nation must include in its foreign policies a strong consideration of that country’s stand in relation to the Chinese Dragon, as well as the American Eagle.
This is similar to the Cold War period when the world also had to consider the Russian (or Soviet Union) Bear.
Every nation has its own financial capital apart from (but not always) the political power center. In the Philippines, the capital is the greater Makati City area. Historically, dating back more than 2,000 years ago, there has been a global financial capital along with other minor “capitals.” These come from a natural money focus-point, primarily because of trade. Manila was one of these minor capitals during the Manila Galleon trade, which linked China to Spain through Mexico.
As trade on the “Silk Road” became common around 500 A.D., India was the world’s financial capital as the bridge between China and Europe. Increased ocean shipping moved the center to Istanbul, Turkey, and across Europe to London as England’s trade with its colonies increased. Eventually, the US and more specifically New York City took on the primary financial role linking all countries in the world.
We are progressively seeing a move of the global financial capital to Asia and specifically China.
All the conversation about a potential “debt-trap” from Chinese loans here in the Philippines is really pocket change in comparison to other places. Italy has just signed onto China’s “Belt and Road Initiative” with a Memorandum of Understanding with an initial potential loan worth up to $23 billion.
Everyone knows that in the face of the European Union ignoring Africa’s need for infrastructure development, China filled that void. But little is known, particularly here in the Philippines, about China’s expansion into Latin America.
Panama, a country of 4 million but holding one of the most important world waterways, is being actively courted by China. So far, projects awarded to Chinese contractors—the canal bridge, a cruise ship dock and a convention center—have been paid for by the Panamanian government. The country has yet to receive Chinese loans. However, other nations borrowing from China for joint projects include Brazil owing $42 billion; Argentina, $18 billion; and Ecuador, which borrowed $17 billion.
Former French President Charles de Gaulle once said: “China is a big country, inhabited by many Chinese.” Hillary Clinton said, “I think China has a very strong aversion to interference in other’s internal affairs.” With that type of “in-depth thinking,” is it any wonder this may be China’s time?
By contrast, Chinese politician and military leader Chiang Kai-shek said, “Contempt for China on the part of the enemy is his weak point. Knowledge of this weak point is our strong point.” Welcome to the 21st century.