China’s economic ambitions
Since joining the World Trade Organisation (WTO) in the early 2000s, China has significantly increased its hegemonic influence on the global stage. Its entry into the WTO marked a turning point, altering the dynamics of the global marketplace. Despite internal complexities in its political and economic ideologies, China has actively encouraged its international counterparts to understand and support its developmental trajectory.
WTO membership enabled China to elevate its status as a global superpower. It facilitated a shift from a rigidly communist system to a hybrid economic model incorporating capitalist strategies, tailored to China’s broader goals. The Chinese government sought to reverse decades of stagnation by engaging more fully with the global economy. Strategic access to international wealth and trade opportunities formed the bedrock of China’s long-term vision.
In the late 2000s, following its WTO accession, China began to assert its hegemonic intentions more clearly. It leveraged market influence to elevate state-owned enterprises (SOEs) within the global economic system. These SOEs entered international financial markets, especially during the 2008 financial crisis, when the collapse of Lehman Brothers exposed vulnerabilities in Western banking systems. China capitalised on this, using foreign direct investment (FDI) to stabilise global markets and assert economic influence.
China’s engagement with the WTO has deepened understanding of its growing hegemonic power. The country has maintained economic momentum, evolving its legal and institutional structures to accommodate international partners better. The Doha Development Agenda, which aligned with China’s interests, further bolstered its position in multilateral trade. Additionally, rulings by the WTO’s Dispute Settlement Body (DSB) provided China with tools to influence international trade practices while reinforcing domestic reforms that enabled FDI to flourish globally.
Institutional innovation has played a central role in China’s transformation. Initiatives like the Shanghai Free Trade Zone, rapid digitalisation and the introduction of central bank-backed cryptocurrency have elevated China’s status within the global investment climate. These developments have expanded China’s capital reserves and fuelled economic growth.
China’s reluctance to fully privatise its SOEs has allowed the government to retain control over key industries. By directing FDI through these enterprises, China has stabilised its currency and maintained an innovative yet controlled economy. Leveraging WTO platforms, these SOEs have engaged in collaborations with multinational corporations under the “Going Global” initiative. This strategic embrace of Western business practices transformed China’s image from an agrarian backwater to a dominant economic force that has adeptly harnessed globalisation.
The adoption of capitalist methods within a communist framework has sparked concern in the West. Some fear this model could challenge the foundations of the global capitalist financial system. China’s state-backed enterprises have indeed used their capital to acquire overseas assets while encouraging domestic consumerism. This marked the beginning of China’s economic hegemony.
Consumerism reshaped China’s domestic market, driven by relaxed regulations and affordable labour and materials. This shift disadvantaged small and medium-sized enterprises pursuing global expansion but enabled large-scale manufacturing efficiency. The decision by Apple Inc. to manufacture in China, for example, symbolised China’s emergence as a hub of innovation. Foxconn’s role in this transformation demonstrated to the world that China’s economy is not only competitive but also indispensable.
Today, as the world’s second-largest economy and a key member of the BRICS alliance, China has extended its economic reach. Companies such as Huawei and TikTok have become global giants, reinforcing China’s role in the digital and technological revolution. Its hegemonic aspirations are increasingly apparent, not just economically, but also politically and militarily. Analysts suggest China could surpass the United States in military capability in the coming decades.
By blending capitalism and communism, China has created a unique governance model that reinforces state control while fostering economic innovation. It is steadily constructing a global sphere of influence, using strategic relationships with trading blocs to extend its reach across continents. China’s presence in Africa exemplifies this, where access to natural resources is driving domestic infrastructure development.
This relationship runs deeper than economic exchange. Many African nations, eager to move away from Western institutions like the IMF and World Bank, view China as an alternative source of funding. In turn, this has strengthened China’s hegemonic influence. By offering a new model of development without the traditional constraints of Western aid; China has positioned itself as a more appealing partner to many emerging economies.
China’s rise is now impossible to ignore, as the country is still being referred to as a developing country according to The Economist. Its economy continues to grow, its infrastructure expands, and it remains firmly rooted in a dual ideological framework. The strategic relationships it has forged, particularly when contrasted with the often-strained ties between Africa and the EU, highlight its long-term vision. China does not seek to wage military conflict. Instead, it aims to displace the United States as the global hegemon, a goal it is steadily approaching.
