ABSTRACT
The chapter analyses the impact of China’s financial and monetary initiatives on the global economic order. To manage its increasing centrality in the global financial flows, Beijing is creating new institutional arrangements that serve to embed its growing geo-economic prominence. China is using its economic leverage to achieve long-term political goals as it is often not only at the core of these shifting asymmetric interdependences but also the key driving force of new institutional arrangements that serve to embed its increasing trade, financial and monetary power. Yet, rather than seeing China’s new power projection only as a disruptive factor resulting from strategic-instrumental statecraft, this chapter provides a supplementary perspective that stresses policy learning closely aligned with domestic conditions and an explorative approach of Chinese policymakers to what one might call geo-economic engineering. The analysis highlights the strong linkages of these new initiatives with the changes in China’s capitalist development path and stresses their experimental character that serves to manage the economic and political risks of China’s accelerating financial internationalization.
