CHINA MODEL

China Economy
It is apparent China has created a modern economic marvel which is sucking off the supper G8 power. The truth is, China has spectacularly accelerated its growth to demand entitlement to influence G8 policies, the once domicile and a poor country is inserting and influencing pressure on super powers. In reality, the world financial crises has eroded the G8 table power and swayed the power to a joker card held by china. The withstanding and recovery of china from economic recession has heaped more power on China and is altering the continuation of cohesion of G8 policies by suppressing G8 state on world policies and drawing a two table players of China and U.S. What was the isolated communist China is not shying a way from its ambitions and it is propelling itself by making the super 8 a ware of the new rules to be formulated in modern world.

China has plumped itself with enough power to dominate on economic policies lingering discussion on the future direction of world economy. The global recession ignited china worry on safety of $ 763.5 investments in U.S and promoted china to call for creation of an alternative to the dollar as a world reserve. The argument forwarded by economist and vibrant investors was china had no alternative, but to kiss the misfortune of deteriorating economy, because the greenback was the world reserve. Even though China was worried, it would not have recalled $ 763.5 billion since there was no better investment alternative for them. We will never know what Beijing was contemplating, but the reality is, china is letting U.S and the other G7 countries know of what it expect from them.

China on the Rise
China has shown the vigor to cast economic beams which will make the country stand and not yield to the influence of G8. Of recent, China has signaled intention to establish renminbi (China currency), as the alternative to the U.S dollar by offering Chinese manufactures subsidies to price exports in renminbi. The openness, the attitude and determination is pioneering new direction of policies likely to erode the dominant of the dollar as a word reserve currency. Because of China big growing consumers market, the supremacy of exports to other countries and aggressive approach to emerging markets, renminbi is in a position to penetrate international trade and initiate a battle of currency choice. China has been quite for decades incubating foundations which have become the rays of resistance to world recession, the future of renminbi domination cannot be ruled out. Chinese intention to dominate world economy initiated the countries movement toward building a remarkable world largest navy force; there's an economic concern for China to displaying its mighty in seas to protect it interest in cargo shipments through out the world. The envious of China to end the supremacy of G8 dominance around the world and global recession has triggered a new beginning which seeks china control of IMF through greater voting rights. IMF had to seek China contribution toward aligning world back from global recession, the take was an agreement reached in June where china acquired $ 50 billion bonds to boost global fund. Indeed, China will be entitled to a greater voice in running of IMF. The recognition of frontier African market as the adventure for Chinese companies and generous economic contribution by Chinese government to African nations has continued to erode the influence of U.S and Europe in African continent. There are emerging economies in Africa which have shown vibrate to negotiate a way from eating on IMF plate without questioning what is served. In this case, the plate has always been served on terms of the G8. Economic Structural Enhancement Programs forced on throat of governments which created economic confusion and alienated more poor people. For decades, the developed countries policies had less impact in uplifting the Africa economies, and to some extent they favored the developed economies. The new application of Chinese model in Africa is based on business collaboration enhances people lives more than donors fund, which has always been corrupted from the governments to the contractors. China is meticulously approaching the African market by opening up a collaboration to create new markets for Chinese ventures through direct investments and government sponsored projects, this approach has promoted more market activities between china and Africa encouraged by Chinese low tariffs for less developed countries.

China Recovery
The china's economic acceleration by itself cannot deliver the world out of merciless recession, but for sure, even though China's economy of $ 4.4 trillion is a pint as compared to the U.S economy of $14 trillion dollars, it is undeniable China growing economy has been the cushion for world economies by infusing the funds in desperate times. Mind you, China injected 50 billion dollars in IMF fund and is a lender to U.S, a significant impact on global economy.

Government spending has been instrumental in steering China economy a way from recession, when the developed economy hibernated to the recession and pulled back from Chinese exports, China created a two years $ 585 billion stimulus package directed towards infrastructure to safe jobs. This was a token added on the core of china government spending driven economy. The injection elevated the infrastructure which saw China plant $ 50 billion on an ultra modern railway system started in 2005. The move safeguarded the rooming crises of massive unemployment out of exports and directed the unemployed of export sector to government absorption. It is arguable the government cannot absolve all lost jobs from export and hope the giant consumers will soon pop up back to life. The fact remains, china is a growing consumer market heavily driven by government spending, but with improving living standards the shift from the government driven will slowly be turned to consumers.

May be, a tighter government grip on an economy is a prescription to a success model. Recession has tested the free market theory and shown capitalism cannot be trusted to govern itself without oversight. China still holds a tighter grip on economy and over the year has slowly loosened the grip without necessary taking the pressure from western world. The economy is controlled from top to down, but the country has shown tremendous growth from private sector. While the world dust off the recession it will be interesting to see whether China economic rise will be adopted as the world model.