ABSTRACT

China has played an increasingly central role in international (economic) relations since its reform and opening-up policy beginning in 1978, triggering signifi cant power shifts in the world economy. 1 China’s mercantilist policy, which is characterized by compliance with international standards to attract foreign direct investment (FDI) and to gain access to overseas markets, and the pervasive role of the state in the market economy 2 has the potential to lead to an Asian Century 3 characterized by a multi-polar economy and the redistribution of political and economic power eastward. 4

* The author wishes to thank Judy Carter, Paolo Davide Farah, Wolfgang Giernalczyk, Sungjin Kang, and Nikos Lavranos for helpful comments.