Time for a Strategic Reset ELIZABE TH ECONOMY
TIME FOR A
Chineseforeign policy hashad a good run. With a booming economy as its calling card, Beijing has pushed to the forefront of the emerging economies, negotiated wide- ranging free-trade agree- ments with its neighbors, and rejuvenated previously
moribund economies through its demand for
natural resources. Its vast foreign currency
holdings have also transformed Beijing into
the world’s banker. China is now the largest
foreign holder of U.S. debt. It is a more significant provider of loans to the developing
world than the World Bank, and is one of the
few global economies capable of significant
assistance in the midst of the eurozone crisis.
China’s very success, however, has bred new
challenges for its foreign policy. The country’s
vast economic reach means it must now be
prepared to address crises far afield, negotiate difficult tradeoffs between its economic
and security interests, and be responsive to
the demands of the global community.
Push back: Environ- mentalists outside the Chinese embassy in Nairobi, Kenya, protest he construction of a Chinese-financed hydro- electric dam, Gibe III.
WINTER 2012 Americas Quarterly