From Dragon to Superpower

Abstract

China is rapidly taking on the appearance of a world superpower. This is a vast change from a little over a decade ago, when the nation appeared to be no more than an oversized developing country with little prospect for successful development. Simultaneous with the ‘last stretch’ to superpower status, the People’s Republic of China (PRC) is displaying other visible signs of modernity and vitality. These include a more business-like approach to managing its domestic and external economic affairs. For example, China now makes use of macro-stabilization programs to curb domestic inflation, is building a legal infrastructure with which to protect the rights of foreign and domestic investors, and is improving the balance between the demand and supply of infrastructure services. This leap toward modernity also is reflected by the development of more flexible financial markets that assure foreign investors that in China they will be able to secure needed financial services.