China pushes for bigger role in reshaping the world economy

[steven johnson]

Source: Los Angeles Times

Reporting from Shanghai-- At a time when the U.S. and other traditional economic powers are weakening, China is flexing its muscles, signaling it will seek a much more assertive role in shaping the future of the world financial order.

Leading up to the gathering of the heads of 20 major developed and emerging economies, Chinese leaders have publicly criticized America's economic system, raised concerns about the safety of China's massive holdings of U.S. debt and, most recently, proposed the creation of a new international currency to replace the dollar.

At the same time, China is snapping up foreign oil fields and mines, ensuring that its raw materials cupboard will be well-stocked when the economy rebounds. This year China has signed deals with Iran, Russia and Venezuela for oil and gas deals worth tens of billions of dollars, and has made moves for stakes or outright purchases of at least seven mining companies.

China sees the global downturn as a once-in-a-century opportunity -- and it has the wherewithal to seize the moment. Although Chinese leaders too are struggling with shrinking trade and rising joblessness, their economy is still growing faster than those of other major nations. Chinese banks are more stable. And the Beijing government is sitting on the largest stockpile of foreign reserves in the world, some $2 trillion.


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[madrchsod]

1. corporate communism wins!

"the future is so bright i have to wear shades"