China Is Getting Ready To Assume World Leadership

The world power is shifting to Asia – that was the underlying idea of the meeting this week of the leaders of Europe and Asia (ASEM).

The Asian economies have recovered more speedily from the economic crisis that shook the entire world in 2008 and 2009 than those of Europe who are still fighting unemployment and soaring deficits and minimal growths.

According to the Cambodian PM Hun Sen, in the coming years the role of the U.S. and EU who used to be the drives of the world economy will decline in favor of Asia.

ASEM was invented in 1996 as a forum for discutions between European and Asian countries. The first were dedicated to the clashes between the “Asian tigers,” the countries that emerged spectacularly in Asia, and the European highly developed countries.

This time though, the roles were a little bit reversed, in the sense that China came to the summit after its prime minister visited Greece, the most vulnerable economy in the European Union, and told Greece that China would buy Greek bonds as soon as they reappear on the market, in a gesture to support the eurozone.

The Chinese PM said that his country was aware of the fact that the economy of many countries of Europe is still recovering and needs help. He didn’t mention these countries but he surely addressed the situation in Spain, Greece, Ireland, and probably the devastated economy of Romania.

Unfortunately, Romanian leadership doesn’t seem to understand the scope of the ASEM meeting nor does it seem to grasp the importance of cooperating with China, which as we can see is more than willing to be of assistance. In fact some opposition leaders proposed a forfeiting of the agreements with the IMF and the substitution of IMF for China as investor in the Romanian economy.

The wise government of Romania doesn’t seem to incline toward this vision, although the European partners agree with it and the Romanian economy is the weakest in Europe, resembling more to one of a Third World country (although no more than two years ago its economy registered the highest growth in Europe, true, with another leadership).

A very important fact was uttered during this conversations: that the Eastern economies were the ones that brought the economic decline to an end.

According to the Luxembourg PM Jean-Claude Junker, it was the Chinese growth performance that acted like a main factor in overcoming the global crisis.

In his turn, the South Korean President Lee Myung Bak said that “Asia is a growth engine for the world economy.”

Under these circumstances it comes as no surprise that China came under criticism from the European leaders for its downing the value of the national currency.

Thus, the European leaders charged that they were expecting China to keep their promise and release the currency in June.

PM Wen insisted in turn upon the importance of keeping the other world currency “stable.”

The European leaders supplicated the Chinese counterparts to change their policy toward currency in order to help Europe, which is the largest market, overcome the crisis. “If Europe continues to bear a disproportionate burden… the European economy will be weakened,” according to Ollie Rehn.

At the end of the summit a traditional ritual was performed: the EU President Herman Van Rumpuy, handed over the honor of hosting the ASEM to the incoming chairman, Laos PM Bouasone Bouphavanah.

The tradition says that leadership rotates between Asia and Europe. Some analysts consider that the symbolic of this gesture is more profound all things above-mentioned considered: they think Europe has handed over the power to Asia.

It would seem that what was a prophecy a few decades back, became a prediction a few years ago and a fact this year.

It has been a while since political analysts regarded China as the new economic (at least) leader of the world.

It looks like China also has a military agenda. A few months ago, China announced they had developed a missile capable of penetrating the shields of American carriers, which, according to many military specialists, including those of the Pentagon, means the end of the American naval hegemony at least in the Pacific Ocean, if not far broader.

A few weeks ago, a flareup sparked between China and Japan over some deserted islands, both countries claiming the possession of these islands. The actual reason for this is the exploitation of the natural resources in the South China Sea.

China is getting involved in diplomatic efforts, too. Thus, it became the advocate of the North Korean regime, and militated for the reopening of negotiations over denuclearisation of the Korean Peninsula.

China is getting ready to take over. Question is, can it back up its claims to world leadership?