Strengthening the Chinese Dragon: Building Economic Power Through International Investment

Lead Author Major

International Relations & Global Studies

Format

Oral Presentation

Faculty Mentor Name

Arturo Giraldez

Faculty Mentor Department

Spanish & International Studies

Abstract/Artist Statement

China’s export-oriented policies have led to unprecedented economic growth, as seen when China became the world’s second largest economy last year. Subsequently, China has built up trillions in foreign exchange reserves during this time. These reserves are largely made of United States Treasury Notes, but over the past five years China has diversified these holdings into other currencies, commodities, Western financial institutions, infrastructure projects around the world, and more. However, as China’s investments are made through state-run institutions (such as the China Investment Corporation, the State Administration of Foreign Exchange Investment Company and the National Social Security Fund), there is concern over the political motivation behind them. How are these investments promoting China’s strategic economic interests? This question is answered through analysis of news reports, official statements, books and academic journals. The conclusion shows how these investments are securing China’s energy and commodity needs in the future, furthering China’s international political relations, and strengthening China’s financial sector.

Location

DeRosa University Center, Room 215

Start Date

21-4-2011 5:00 PM

End Date

21-4-2011 8:00 PM

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Apr 21st, 5:00 PM Apr 21st, 8:00 PM

Strengthening the Chinese Dragon: Building Economic Power Through International Investment

DeRosa University Center, Room 215

China’s export-oriented policies have led to unprecedented economic growth, as seen when China became the world’s second largest economy last year. Subsequently, China has built up trillions in foreign exchange reserves during this time. These reserves are largely made of United States Treasury Notes, but over the past five years China has diversified these holdings into other currencies, commodities, Western financial institutions, infrastructure projects around the world, and more. However, as China’s investments are made through state-run institutions (such as the China Investment Corporation, the State Administration of Foreign Exchange Investment Company and the National Social Security Fund), there is concern over the political motivation behind them. How are these investments promoting China’s strategic economic interests? This question is answered through analysis of news reports, official statements, books and academic journals. The conclusion shows how these investments are securing China’s energy and commodity needs in the future, furthering China’s international political relations, and strengthening China’s financial sector.