|
Besides
deficiencies in it’s military capabilities, China’s action is
further constrained by it’s economic interdependence on the World,
insufficient finance, external constraints, domestic problems as well
problems in it’s modernisation programme.
Economic
Inter-dependence
The
most striking effect of China’s recent development is
inter-dependence with the World’s trade and investment especially
with the major advanced industrial countries.
Table
3 :
China’s External Trade, Foreign Direct Investment and
International Foreign Reserves.
|
Description
|
Year
|
|
|
1985
|
1995
|
|
External
Trade (US$ billion)
|
|
|
|
a.
Exports, fob
|
27.4
|
148.8
|
|
b.
Imports, cif
|
42.3
|
132.1
|
|
Foreign
Direct Investment (US$ billion)
|
1.0
|
31.8
|
|
International
Reserves (US$ billion)
|
16.9
|
80.3
|
Source
: Economics
and Development Resource Centre,
“Key Indicators of Developing Asian and Pacific Countries 1996”,
Vol. XXVII, (Oxford University Press, 1996).
From
table 3, all indicators pointed to a China which depended heavily on
the international communities to sustain it’s growth. The Chinese
leaders are well-aware of this fact and would seek to pursue a
moderate course in international affairs to maintain it’s economic
success. |