China’S Rise as a Global Superpower

Abstract

China has created an economic miracle since its economic reforms began in the late 1970s, becoming the fastest growing economy in the world. The tremendous success of China’s economy has attracted worldwide attention. But at the same time, it has raised concerns as the country’s enormous debt overhand and outsized shadow banking system is weighing on its economy. Could the end of the China miracle be near or is China on track to become the dominating global superpower? This paper explores from a historical perspective the success factors of the Chinese miracle since the communist revolution and examines the economic and geopolitical implications that would be triggered by the elimination of the factors. We conclude that despite all current economic and social problems, China has all the prerequisites to become the new world hegemon in the coming years.

Keywords: Financialization, debt deflation, asset inflation, speculation, capitalism, profit rate, Economic Development Model, War

JEL Classification: B52, E31, E51, G01,N45, P34, R31