China’s rise in Post-Pandemic World Order: A Serious challenge for Dollar Diplomacy

The insurgency of colossal negative effectiveness of SARS-CoV-2 from Dec-2019to Post 2020 world is a Multidimensional model rather than that of an Unidimensional model of devastation. It has not confined it’s impact within the public health emergency rather on the Economic risks (rise of unemployment, steady growth of inflation rate, disruption of supply chain, outflow of capital and slowdown of FDI), Societal risks (rise of chronic trauma, increase of psychological anxiety and stress, Coronaphobia) ,Technological risks (Cyberattacks, Fraud of database, inflows of unemployment at workplace) and Geopolitical risks which includes restraints on cross border free flow of peoples and goods, scrapping of foreign aid & rise of Humanitarian Crisis and so on throughout the world for a prolonged period of recession.

As far as Bullying on rise of superpower status is concerned from BC (Before Coronavirus) to the post pandemic world order some political and economic experts has been adhering the notion that China will continue it’s stability and predictability in the area of economic growth from the Asian periphery to over the western hegemonic powerhouse, meanwhile particularly for USA, China has possess its counter balance (yuan(¥) therapy over the dollar diplomacy by formulating  strong apparatus for domestic supply chain and logistics support through approaching the calibrated approach both in national and international market.

In the recent couple of years China has adamantly pushed its ambitious objectives like ‘Going Global Strategy’,‘Made in China 2025’ and ‘China Standards Initiative in2035’,and through the Xi Jinping’s foreign policy strategy and it’s massive investment policy in the area of Research and Development (R&D) especially in qualitative approach of development in the critical areas of emerging technologies such as 5G (Huawei) , Artificial Intelligence (AI), Internet of Things (IoT), Machine Learning and Computing etc. But unfortunately China has been facing it’s trade rivalry with the US, Australia, and territorial confrontation with India along the Line of Actual Control (LAC) and unlawful incursion of China in South China Sea, East China Sea, Senkaku Island and with the dispute over the other Islands  like Paracel Island (China & Vietnam), Scarborough Shoal Island (China & Philippines) and Spartly Island dispute over multiple stakeholders like China, Vietnam, Malaysia, Brunei, Philippines and other non-littoral members of South China Sea, which has creating a partial challenge for China to push it’s Huawei and ZTE (Zhongxing Telecommunication Equipment) technology throughout the world level.

As per the security concerns of 5G technology Huawei of China has faced a serious challenge by the Cyber Experts on the threat of national security, sovereignty and it’s incursion on the national interest of the independent nations and stealing of data by the Chinese intelligence. Whereas China will suffered its major setback in it’s fiscal deficit.

Is Bullying of rising China the Challenge for Dollar Diplomacy…?

In this catastrophic situation of economic crisis both developed and developing countries has been trying to stabilize their domestic economy crisis by rolling out the various rejuvenating plans for instance USA government has followed by direct benefit transfer around US$2000 per individuals to their bank accounts, in recent 21 July 2020 European Union has approved Next Generation EU  €750 billion proposed stimulus package for 27 member countries with the longest time period from 2021-27, and India has also followed some stimulus economic assistance in the MSMEs sectors and 1.7 trillion package for the poor family in order to lift its economic damage from Coronavirus Outbreak. Similarly as far as China is concerned it is not crystal clear what kind of fiscal and monetary stimulus they have adopted in order to revive it’s economy from being slaughtered by pandemic.

Optimistically, China is very much vibrant over the achievement of it’s realist value of national interests and rising superpower status by projecting various multibillion dollar projects like BRI, $900 New Silk Road, CPEC and maritime trade projects, logistics supports and so on. As far the economic stability and viability in post pandemic world situations is concerned the major economists has been predicting that the Asian economy  will be possible to stabilize it’s economic crisis as partially effective than that of the western dollar economy, because the western part of the world especially USA has been severely triggered by Covid-19 and it’s economic response towards the pandemic by comparing the Asian periphery is very high.

In 18 July, 2020 US Department of Defense published an article which cites the Defense Secretary Dr. Mark T Esper pointed  out that, “We (USA) are in an era of great power competition… and that means that our top strategic competitors are China then Russia,” he said China is bigger problem, he said as it has the population and economic to displace the United States. It’s very clear to me and anybody who understands China that they have the ambition to displace USA certainly from the origin and preferably on the Global stage. Mark also pointed about the Chinese wants to rewrite the rules if the international order that have served the nations of the world.

Both China and Asian countries has very good experience of multilateralism  protectionist measures over the past lessons from “Asian Contagion” of 1997 (Asian Financial Crisis) in order to stabilize their devaluation of currency value with the US dollar. Aftermath the Economic and Monetary Union pushed it policy of Economic Integration by formulating the “Chiang Mai Initiative” or ASEAN+3 in 2001 which consists of ten Asian countries with China, Japan & South Korea. It was developed as a parallel circulation of new currency against US dollar and Euro under the cumulative proposal of Regional Monetary Unit (RMU). Yes, it has as an ultimatum for China and particularly for Asian countries to unanimous officials circulation for enforcement against dollar currency.

Positively, we can say China has cited some long- term potential development may become an economic superpower but will not be able to match the overall strength of the USA.

Suryakanta Rout
Suryakanta Rout
Post Graduate Student in Political Science Department of Politics and International Studies Pondicherry University, Puducherry, India.