China's Financial Multilateralism Initiative and Challenging the International Financial Order (2008-2019)

Document Type : Research

Authors

1 Assistant Professor of International Relations, Department of International Relations, Faculty of Law & Political Sciences, Kharazmi University, Tehran, Iran

2 Professor of International Relations, Department of International Relations, Faculty of Law & Political Sciences, Kharazmi University, Tehran, Iran.

3 Assistant Professor of International Relations, Department of International Relations, Faculty of Law & Political Sciences, Kharazmi University, Tehran, Iran.

4 PhD Student of International Relations, Department of International Relations, Faculty of Law & Political Sciences, Kharazmi University, Tehran, Iran.

Abstract

The financial order of the international political economy after World War II with the center of the United States and its partners was formed on the basis of the Bretton Woods Conference of 1944, and since then the IMF and World Bank have served as key representatives of this order in the world economy. China's rise and expansion of its influence and economic power, It has led us to see more of this actor in the financial field of international political order. The purpose of this article is to study China's financial minilateralism and its impact on the financial order of the international political economy and the analytical-explanatory method will be answered to this question of how China's financial multilateralism has challenged the international financial order since the 2008 financial crisis? In response, it is assumed that after the 2008 financial crisis, China has created a New parallel historical block to the international financial order by spreading the idea of financial multilateralism to abroad, thereby has challenged the hegemonic position of the existing financial order. The findings show that China has tried by normalization and dissemination Chinese ideas through the Asian Infrastructure Investment Bank, Unconditional Loan Procedures, the BRICS Finance and Reserve Fund, and financial and monetary cooperation with other countries in the framework of the Silk Road Revival Project organized a new type of financial minilateralism outside institutions such as the World Bank and the IMF and created a new configuration in the historical structure of the international institutional order.

Keywords

References

References
Abdenur, A. E. (2014), “China and the BRICS Development Bank: Legitimacy and Multilateralism in South-South Cooperation”, IDS Bulletin, vol. 45, no. 4.
AIIB (2016), “Projects”:
http://www.aiib.org/html/PROJECTS/. Accessed 08 Navember 2019.
Anderlini, J. (2014), “Beijing Pushes for World Bank Rival”, Financial Times, no. 25.
Bird, G., A. Mandilaras, and H. Popper (2012), “Is there a Beijing Consensus on International Macroeconomic Policy?”, World Development, vol. 40, no. 10.
Callaghan, M. and P. Hubbard (2016), “The Asian Infrastructure Investment Bank: Multilateralism on the Silk Road”, China Economic Journal, vol. 9, no. 2.
Cgtn.com. (2018), “Capital on the Road: Belt and Road Boosts Yuan Worldwide”:
https://news.cgtn.com/news/3d3d774d7851444f79457a6333566d54/share_p.html (accessed on 14 june 2019).
Cohen, T. (2010), Global Political Economy: Theory and Practice, Translated by Adel Peyghami et al., Tehran: Imam Sadegh University Press (in Persian).
Cox, R. (1981), “Social Forces States and World Orders: Beyond International Relations Theory”, Millennium, Journal of International Studies, no. 10.
Cox, R. W. (1983), “Gramsci, Hegemony and International Relations: an Essay in Method”, Millennium, vol. 12, no. 2.
Dehshiri, M. and Z. Bahrami (2015), “China's Strategic View of the BRICS”, Journal of Central Asia and the Caucasus, vol. 21, no. 89 (in Persian).
Dollar, D. (2018), “Is China’s Development Finance a Challenge to the International Order?”, Asian Economic Policy Review, vol. 13, no. 2.
Donyaye Eghtesad Newspaper (2020), “Chinese Tactics to Change the World Economy”: <https://donya-e-eqtesad.com> (in Persian).
Elson, Anthony (2014), “Dragon among the Iguanas”, Finance & Development (IMF Online), vol. 51, no. 4.
Eyler, Brian (2015), “China’s New Silk Roads Tie Together Three Continents”, China Dialogue:
https://www.chinadialogue.net/article/show/single/en/7849-China-s-new-silk-roads-tie-together three-continents. [Accessed on March 20, 2019].
Gill, Stephen. (2003), Power and Resistance in the New World Order, Basingstoke: Palgrave.
Güven, A. B. (2017), “The World Bank and Emerging Powers: Beyond the Multipolarity–Multilateralism Conundrum”, New Political Economy, vol. 22, no. 5.
HSBC. (2018), “The BRI is Breathing New Life into the World’s Largest Inland Port”:
https://www.business.hsbc.com/belt-and-road (accessed on 14 june 2019).
http://www.imf.org/external/pubs/ft/fandd/2014/12/pdf/elson.pdf. [Accessed on may 20, 2019].
Ikenberry, G. J. (2008), “The Rise of China and the Future of the West-Can the Liberal System Survive”, Foreign Affairs, vol. 87, no. 23.
Ikenberry, G. J. (2011), “The Future of the Liberal World Order: Internationalism after America”, Foreign affairs.
Ikenberry, G. J. and D. J. Lim (2017), China’s Emerging Institutional Statecraft: The Asian Infrastructure Investment Bank and the Prospects for Counter-Hegemony, Washington DC: Brookings Institute.
Karluk, S. R. and S. C. Karaman (2014), “Bridging Civilizations from Asia to Europe: The Silk Road”, Chinese Business Review, vol. 13, no. 12.
Keuleers, F. (2015), “Explaining External Perceptions: The EU and China in African Public Opinion”, JCMS: Journal of Common Market Studies, vol. 53, no. 4.
Khong, Y. F. (2014), “Primacy or World Order? The United States and China's Rise—A Review Essay”, International Security, vol. 38, no. 3.
Koh, G. Q. (2015), “China’s AIIB to Offer Loans with Fewer Strings Attached than World Bank: Sources”, The Japan Times.
Mechstroth, D. (2015), “China Solidifies Its Position as the World’s Largest Manufacturer”.
Mazarr, M. and et al. (2020), “China and International Order”, Translated by Mohsen Mahmoudi and Javad Arab Yarmohammadi, Report: Center for Presidential Strategic Studies (in Persian).
Monaghan, A. (2014), “China Surpasses US as World's Largest Trading Nation”, The Guardian, no. 10.
Musazadeh, R. and B. Khosravi (2015), “BRICS and International Institution Building”, Foreign Policy Quarterly, Twenty-Ninth Year, no. 4 (in Persian).
Nadkarni, V. and N. C. Noonan (eds.) (2013), Emerging Powers in a Comparative Perspective: The Political and Economic Rise of the BRIC Countries, Bloomsbury Publishing USA (in Persian).
Niu Xinchun (2012, 13 March), “U.S.-China Relations: Collision and Competition of Ideologies”, Research in International Problems.
Pang Zhongying (October 16, 2014), “ The Postwar International Order Has Changed Beyond Recognition”, Global Times.
Peng, Z. and S. K. Tok (2016), “The AIIB and China’s Normative Power in International Financial Governance Structure”, Chinese Political Science Review, vol. 1, no. 4.
Ram Prasad, Bandi (2015), “Brics and the Global Economy”:
http: //www. nkibrics. ru/system/brics.
Ramo, J. C. (2004), The Beijing Consensus,London: Foreign Policy Centre.
Reuters (2018). “Latin America Should not Rely on China: U.S. Secretary of State Tillerson”, Febrary 1, Available at:
https://www.reuters.com/article/us-usa-diplomacylatam- china/latin-america-should-not-rely-on-china-u-s-secretary-of-state-tillersonidUSKBN1FL6D5.
Schablitzki, J. (2014), “The BRICS Development Bank: A New Tool for South–South Cooperation”, BPC Policy Brief, vol. 5, no. 1.
Shariatinia, M. and H. Azizi (2016), “Iran-China Cooperation in the Silk Road Economic Belt”, Foreign Relations Quarterly, Ninth Year, Fourth Issue (in Persian).
Shirkhani, M. and F. Arghavani Pirsalami (2012), “Beijing Consensus; A New Pattern of Development in the Globalized Era”, Quarterly Journal of Politics, vol. 46, no. 1 (in Persian).
Swartz, Spencer and Shai Oster (2010), “China Tops U.S. in Energy Use: Asian Giant Emerges as Theory”, Millennium: Journal of International Studies, vol 10, no. 2.
Times, F. (2014, 30 October), “Beijing’s Challenge to the World of Bretton Woods”, Financial Times, London.
Wallerstein, I. (1997, January), “The Rise of East Asia, or the World-System in the Twenty-First Century”, in: Keynote Address at the Symposium on ‘Perspective of the Capitalist World-System in the Beginning of the Twenty-First Century.
Wang, H. (2019), “The New Development Bank and the Asian Infrastructure Investment Bank: China's Ambiguous Approach to Global Financial Governance”, Development and Change, vol. 50, no. 1.
World Economic Forum (2016), “8 Things you Need to Know about China’s Economy”:
 https://www.weforum.org/agenda/2016/06/8-facts-about-chinas-economy/.
World Economic Forum (2017, 17 January), “President Xi’s Speech to Davos in Full”, Davos, Switzerland, Keynote Speech at Opening Session of Annual Meeting.
Xing, L. (2019), “China’s Dual Position in the Capitalist World Order: A Dual Complexity of Hegemony and Counter-Hegemony”, Jiaoxue yu Yanjiu, vol. 53, no. 2.
Xinhua (2015), “China to Launch 30-bln-USD Special Fund for China-Latin America Production Capacity Cooperation”:
http://news.xinhuanet.com/english/2015-05/20/c_134255462.htm. [Accessed on March 20, 2019].
Zhong Sheng (2017, 24 November), “ Significance of 19th CPC Congress, Promoting Community of Common Destiny”, Beijing Renmin Ribao Online.
International Political Economy Studies
Volume 3, Issue 2
March 2020
Pages 383-408

Files

History

  • Receive Date: 05 February 2020
  • Revise Date: 16 January 2021
  • Accept Date: 19 January 2021

Share

How to cite

Statistics