ABSTRACT
By sustaining dynamic growth, China increases its presence in the world economy. China became the world’s largest holder of the US Treasury securities in September 2008, when Lehman Brothers failed, and may even affect the US economy. As a key member of the G-20, a likely alternative to the G-7 for global economic leadership, China is expected to boost the world economy. As a representative of developing countries, China has advocated reforming international financial organizations including the International Monetary Fund (IMF) and in expanding aid to them. Without gaining China’s consent, it would become increasingly harder to advance the stalemated multilateral negotiations at the World Trade Organization (WTO) and the United Nations Framework Convention on Climate Change (UNFCCC). When Chinese president Hu Jintao was prevented by the turbulence in Uighur from attending the G-8 L’Aquila summit in July 2009, the G-8 countries did not succeed in exercising critical leadership over the solution of global issues. Considering the growing role of China in building global governance, it is currently proposed in the United States to form or even move toward an exclusive “G-2” relationship with China.1
