ABSTRACT
In relations between China and the United States, the salience of the context of augmented market liberalism rests on the use of some structured arrangements of the world economy as tools of American foreign policy to bring about change within China. The entry of China into the world economy matches George Modelski’s idea of foreign policy: “the system of activities evolved by communities for changing the behaviour of other states and for adjusting their own activities to the international environment”. The containment policy was precipitately abandoned, and the US policy shifted to establishing a less hostile and more cooperative relationship with China. The chapter illustrates the perceptions of decision makers with respect to China’s Third World role. The post-cold war era required a functional change of the long-established economic institutions in accordance with China’s internationalization process and economic development.
