takeoff stage while successfully completing the final
puzzle pieces to obtain a great power predicate.
China has economic and expert resources capable of
becoming a leader in the international economy as
well as preparing the foundation of great military
capabilities in the future. Experts and academics
who previously predicted China's strength as great
power in the future began to worry about the
implications it could have on the international order
(Lardy, 1994).
Michael D. Swaine (2011) in his book America's
Challenge: Engaging a Rising China in the Twenty
First Century explains that China's domestic
economy and its involvement in the global economy
contain features relevant to the interests of the
United States. Through these features, it is clear that
China's actions at the global level are also the
reasons why the United States is disturbed as the
great power of the world today. There are seven
features to be discussed in the next explanation:
global interdependence, defense spending, economic
relationships with other major powers, large
surpluses in the economy, high energy demand,
relationships with developing countries, and the
provision of economic assistance and other forms of
assistance (Swaine, 2011). First, note that China's
economic growth depends not only on the pattern of
domestic economic growth but also on international
trade, investment and technology. For example,
between 1980 and 2006, China's international trade
as a proportion in gross domestic product or GDP
grew from 22% to 71%. In addition, the ratio of
imports to China's GDP also increased from 11% in
1980 to 32% in 2007. The same condition is seen in
terms of exports of goods and services which
contribute most of China's GDP (Bergsten et al.,
2006).
The results of China's involvement in the
international economy lead to high levels of Chinese
participation in international economic institutions
and international forums such as the World Bank,
the International Monetary Fund (IMF), the World
Trade Organization (WTO), the Asian Development
Bank, the ASEAN Plus Three (APT) and also the G-
20. In addition, China also promotes various
economic and trade agreements in the Asia and
Pacific region. There are seven free trade
agreements (FTAs), two economic partnership
agreements, and an economic cooperation
framework agreement with a total of seventeen
countries and two special administrative regions.
Sixteen of China's nineteen economic agreements
come from countries from Asia and the Pacific
(Swaine, 2011). Based on World Bank (2013) data,
the Asia and Pacific region accounts for about 40%
of the world's total economic growth. The more
aggressive the development of China's economy
suppressed the position of the United States as Asian
Power since the end of World War II.
The second feature of defense spending is
closely linked to China's rapid economic growth and
technological innovations that promote an increase
in China's military modernization programs.
Entering the 2000s, China's defense spending was in
the 12% range. In 2010, according to the Stockholm
International Peace Research Instance (SPIRI),
China spent about 114.3 billion US dollars or 2.2%
of China's total GDP (Swaine, 2011). China
currently ranks both countries with the largest
military spending after the United States. The third
feature deals with China's economic dependence on
international trade that makes it a cooperative
relationship with many major countries. In 2002,
China surpassed the United States as the world's
largest recipient of foreign direct investment. In
2009, China achieved the title as the world's largest
exporter and stepped over Germany as the second
largest trading country after the United States. China
in this case establishes good cooperative relations
with EU countries and enhances the interdependence
of the economy. The success of China then
continued in 2010 successfully overtaking Japan as
the world's second largest GDP country. China's
influence not only covers the countries of Europe
alone but also the big countries in Asia such as
Japan and North Korea are known to have good
relations with the United States. China's economic
maneuver is again a challenge for the United States
to maintain its influence in the Asian region
(Swaine, 2011).
The fourth feature is seen from the large surplus
gained by China. In 2010 alone, China recorded a
surplus of 306.2 billion US dollars. Some
transactions and assets involved in these transactions
use the United States dollar including a trillion
dollar asset from U.S. Treasury and other US dollar-
based assets (Swaine, 2011). In theory, China can
significantly affect the value of the US dollar and
this further adds to the United States' vigilance
against China. Fifth is the magnitude of China's
energy needs to sustain its growth. China's need for
raw materials from other countries such as iron, oil,
steel, and much more is increasing. Based on data
from the International Energy Agency or the IEA,
China is the largest energy consuming nation in
2009 beating the United States. The amount and
tempo of Chinese imports on raw materials and
energy has led many observers to take into account