China's Economic Ascent and the Global Power of the European Union

Causes for the Rise of the Chinese Economy

The Chinese government implemented several major policy decisions that fueled the rapid rise of the Chinese economy:

1. Ending Isolation (1972): The first major decision was to end its political and economic isolation by establishing relations with the United States in 1972.
2. The Four Modernizations (1973): China's leader, Premier Zhou Enlai, proposed the "Four Modernizations" focusing on key sectors:
   • Agriculture
   • Industry
   • Science and Technology
   • Military
3. Open Door Policy and Reforms (1978): By 1978, leader Deng Xiaoping announced the ‘Open Door’ policy and comprehensive economic reforms. The primary goal of this policy was to generate higher productivity through investments of capital and technology from abroad.
4. Privatization Timeline: They began with the privatization of agriculture in 1982, followed by the privatization of industry in 1998.
5. Agricultural Boom: The privatization of agriculture led to a remarkable rise in agricultural production and rural incomes.
6. Rural Industry Growth: High personal savings in the rural economy led to an exponential growth in rural industry. Consequently, the Chinese economy, including both industry and agriculture, grew at a faster rate.
7. Special Economic Zones (SEZs): Trade barriers were eliminated only in Special Economic Zones (SEZs), allowing foreign investors to set up enterprises easily. The new trading laws and the creation of SEZs led to a phenomenal rise in foreign trade.

Economic and Political Influence of the European Union

Economic Influence of the EU

1. Global Economic Power: The EU is the world's biggest economy, boasting a GDP of more than $12 trillion in 2005, making it slightly larger than that of the United States at that time.
2. Currency Strength: Its currency, the euro, poses a potential threat to the dominance of the US dollar globally.
3. Trade Assertiveness: The EU's share of world trade is three times larger than that of the United States, allowing it to be more assertive in trade disputes, particularly with the US and China.
4. International Bloc: The EU functions as an important bloc in international forums. Furthermore, key member states, such as France, hold permanent seats on the UN Security Council (UNSC).

Political Influence of the EU

1. UNSC Presence: The EU includes several non-permanent members of the UNSC, enhancing its diplomatic reach.
2. Policy Influence: This collective presence has enabled the EU to influence some US policies, such as the current US position on Iran's nuclear program.