The consequences of China's growing influence on the world economy

In recent years, the economic influence and the importance of China have grown enormously. Hermann Remsperger, Deutsche Bundesbank, sees benefits in the stronger integration of China in the world economy, since global competition will increase, boosting productivity world-wide. On the other hand, China is also the cause of strongly growing imbalances. Berend Diekmann, Federal Ministry for Economics and Technology, also sees the development positively: "The integration of China improves the supply of goods and services world-wide." In his opinion, the country should be included to a greater extent in the international co-operation organisations. Markus Taube, University of Duisburg-Essen, points out that in the integration of China in the international division of labour Chinese firms have tended to play a more passive role. This form of integrating China in the world economy is currently undergoing decisive change. China's firms are no longer content to act as passive, dependent agents; they now want to conquer the global markets on their own. "Chinese firms will become part of the global oligopoly in the medium term and will actively help shape the international markets." Carsten Herrmann-Pillath, University of Witten/Herdecke, views China "as a model of an evolutionary strategy of institutional change under uncertain framework conditions, which at least at present in the global competition are proving to be extremely successful." Rüdiger Ahrend, OECD, regrets that the economic development of China is regarded very critically in general public opinion: "This is a pity since the economic development of China is making a major, positive contribution to global economic development."