China Must Lead

China Must Lead

China Must Lead

The current financial crisis has hit the international economy hard and at lightening speed. All around the world large financial institutions have collapsed, stock markets have tumbled, and with financial systems in shambles, governments are forced to spit out huge rescue packages. Interestingly enough, the Chinese government has been able to prevent its economy from collapsing; the implementation of swift, effective stimulus package played a crucial role in this. In light of this success, international attention is increasingly turning to China with the expectation that they will take action and lead the world out of the global economic crisis.
Without a doubt, the world financial crisis has negatively impacted every country in the world.   The recession, which continues to unfold, has seriously paralyzed just about every western industrialized nation. China, on the other hand, has managed to stay afloat through aggressive fiscal and monetary policies. Reports from the government indicate that the overall economic situation is good and the basic momentum of the economy has remained unchanged. In fact, China’s foreign reserves continued to rise during this time period and have even approached a historical record of $2 trillion dollars. Moreover, at the end of 2008, as worldwide economies crumbled, China reported 6.9% growth in its GDP. It is believe that China’s economy “can probably maintain growth of above 6 percent a year” considering the half a trillion dollar economic stimulus recently implemented (Ferguson 3). Such positive economic data proves the soundness of the Chinese economy, and perhaps hints to their ability to lead the world out of the recession.
China should absolutely play a decisive role in the resolution of today’s global crisis. The aforementioned surge in reserves alone suggests that China is powerful enough to influence a rebound from the contemporary global recession. With its growing economy and stable...