China's Role in the Global Political Economy Essay

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What is the Global Political Economy? According to O’Brien & Williams (2010) this is a term used to describe the interrelationship between national and international, politics and economics. It basically shows the interplay of powerful states, regions, and global institutions which fall under the realm of politics with global trade, global finance, investing and capital movements comprising economics. This ideology does not look at politics and economics in isolation but it draws from other fields such as geography, sociology, women studies and history as these disciplines play an important role in explaining how politics and economics interrelate (O'Brien & Wlilliams, 2010). Nevertheless, the question is where China stands within this …show more content…
Secondly, what is liberalism? This ideology focuses on the role of the market and the many actors within it and suggests that the state should have a minimal role to play, thus creating a freer market supported by such theories of privatization and deregulation.
Economic Nationalism
Analysts of the economic nationalist perspective stress the importance of the interest of the state in domestic and international relations (Hette, 1997). In the literature of O’Brien & Williams (2010) they are some basic assumptions about this perspective, firstly; the state is superior and has the duty to protect its own; and secondly markets are seen as “unnatural” and everything in it should be governed by the state, moreover; such things that should be controlled by the state include production, consumption, exchange and investments. Generally, this theory is built on the assumption that all economic entities within the market are subordinate to the political system.
Merits of Economic Nationalism One may wonder, what benefits economic nationalist principles can present to a country? How can a country controlled by the state have any merits? Within the year 1949 China was controlled by the Chinese Communist Party (CCP), under their control they adopted a command economy ideology; they made all decisions, owned and control most of the economic resources of the country (Hobden, 2008). This meant that the government’s commands and policies drove the

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