China’s is the world’s second largest economy in terms of gross domestic product and and the largest in terms of purchasing power parity. How China leverages its considerable economic strength has a profound impact on the global economic order.
Economics
Economic power is at the heart of China’s growing global influence. China’s economic prowess, fueled by trade, has enabled it to move from the periphery to the center of the international system. With the world’s second largest economy, how China leverages its economic power has profound consequences for the global order. To learn more, explore our featured content below.
Is it a risk for America that China holds over $1 trillion in U.S. debt?
Many worry that China’s ownership of American debt affords the Chinese economic leverage over the United States. This apprehension stems from a misunderstanding of sovereign debt and of how states derive power from their economic relations.