6IB006 Debating Globalization.

2040721

“Discuss a growing rivalry between the US and China as the

global hegemony.”

Module: 6IB006 Debating Globalization.

Year: 2021 Level: level- 06
Assessment Number/Sequence: 01 Due Date: 12th May 2021
Module Tutor: Dr. Vedesh Chandra Lal
Module Leader: Eun Sun Godwin
Das Sir
Assessment Type: Individual type Word counted
Course Title: International Business Management at Merryland College Biratnagar,
Nepal (MCB)

Submitted to: University of Wolverhampton

Submitted by:
Student number:
Student name: Kisan Bhagat
2040721
Submission Date: 12 May 2021

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Student Name: Kisan Bhagat

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6IB006 Debating Globalization. 2040721

Date: 12th May 2021

AKNOWLEDGEMENT

It is an honor to express immense gratefulness to Module Lecture Dr. Vedesh Chandra

Lal Das for his continued guidance, support, and fruitful suggestion in accomplishing
this assignment.

I would like to express my intense gratitude to our module leader Eun Sun Godwin for
introducing 6IB006 Debating Globalization. Lastly, I would like to thank the University
of Wolverhampton, for providing me such a great opportunity to enhance my aptitude,
knowledge, and wisdom.

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“Discuss a growing rivalry between the US and China as the

global hegemony.”

These days, the increase in tension between US and China’s trade clearly shows that
there is an intense competition and rivalry. When China was weak and struggling with
Poverty reduction (HUANG, 2016), many scholars had already raised a debating
questions regarding its rapid growth in certain period frame. However, the truth came to
be true at present as can be seen from its growing economy and military power. It has
already started giving neck-to-neck competition to US from all spheres. Due to this
reason, US has been fearing and is in intense pressure to dominate and is restricting
China from every point it could. The rise of China has in fact helped global politics to be
transformed and balance the economy in the world. Similarly, the rise and the fall of
Britain can also show that every certain century new hegemon take place like the US
did after Britain and now China is on the move to overtake US, but the scenario may be
different in comparison to past (Modebadze, 2020). Both the US and China are on
frontline on the racetrack and are ready to reach on the top. In many events, China has
slapped US to the ground like it did in AI race being number 1 in the world, which was
happened in 2021(Borrett, 2021). However, it does not mean US will lose every battle
but it is clear that it will not be the one and only superpower in the world in all the
aspects.

Moreover, many people says that, the US economy is declining but is better to look at
the share of industrially manufactured goods and its exports to across the world
(Strange, 2001). US does not need to show up its power in the global market because it
is not only a country but also well recognized as the global brand. According to the
survey, 71% of consumer prefer products or service made in the US. The tagline made
in America is highly trustable and large in demand (usnews, 2021). The world six
largest Computer manufacturing company along with market cap such as Apple with 2
trillion USD, Dell with 49 billion USD, HP with 29.5 billion USD (JOHNSTON, 2020),
Cisco with 169.2 billion USD and IBM are belongs to US (Das, 2021). Furthermore, its

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service industry holds more than 50% of world share market is expected to grow much
large due to large in demand and increase in world’s population (Modebadze, 2020).
While talking about China, it has been more focusing on research, innovation, and
technology, so that the overall performance of country could be multiplied. According to
data, it shows that China has a brain drain of top artificial talent (AI). It has been
reported that, around 30% of AI talent brain of top tier comes from China whereas the
US is with 20%. So, by 2030 China is expanding its Research and development
facilities to achieve AI supremacy (Borrett, 2021). Similarly, Huawei is about to win the
5G race against US. Many countries such as Russia, South Korea, Brazil, Malaysia,
Netherland, Saudi Arabia, and others have agreed deal of using Chinese 5G network.
However, opposition from US has strictly restricted many NATOs and other countries
ban the Chinese network (Sacks, 2021). But the prediction made by Ericson shows that
nearly 1 billion population of world will have access to Huawei 5G network by the end of
2020 (Pan, 2020).

The United States of America (USA) is known to be the founder of World Bank, which
was developed in mission to rebuild and restructure the European Nation after World
War 2. However, at present it acts to provide finance for developing nations and fights
for poverty (KENTON, 2021). The influence of US on World Bank is significant and used
as a medium to create and impact in the developing nations. It is vivid that the source of
fund provided by World Bank usually goes to those nation which have good and smooth
relationship with the US and are denied for rivalry countries. Even the head of World
Bank are chosen by the USA and has always been US citizen. It possesses power of
17% votes, Japan with 6% and Germany with 4.7% (Wade, 2002). The US is looking to
reform its economic development, which was hampered and staggered by COVID19-
outbreak. It has affected it from finance to restaurant and airlines to retail industry
(Saha, 2020). Data shows, around 25.7 million workers have registered for unemployed
(Rushe and Sainato, 2020). So, to protect US more getting into crisis, US lawmakers
are in rush to pass the relief package bill of 2 trillion USD and this was signed by
President Trump during his tenure which must be finally passed by Congress (Hughes

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and Andrews, 2020). On the other hand, China has been very tactful using its financial
institution to expand network and development plans into various projects of different
countries. In 2003, China made and arrangement to provide 10 billion USD as a credit
to Angola for the development of infrastructure, and in 2009 Angola extended its loan
with additional 1 billion (USD (Institute of Developing Economies, n.d.). China is not
only helping poor nations in terms providing loans and building new projects as a
strategic plan for international presence, but also it had launched a new bank named
Asian Infrastructure investment bank to, where 60 countries have already joined it
(WONG, 2016). Many researchers have China’s debt track to expand its financial
market and boost up its economy lending money to developing nations, for instance,
China provide loaned amount to 1 billion USD to build a port (Abi-Habib, 2018), but it
seems that Sir Lankan government will not be able to repay its debt within a given
period. Due to this, Sir Lank has decided to lease the same port to China for 99 years in
return for 1.1. Billion USD to reduce the loan burden (Ondaatjie and Sirimanne, 2019)
In sum from both countries’ perspective regarding trade agreement, the new trade
agreement between US and China has helped to ease a trade war between these two
nations Chinese government has decided to purchase goods of 200 billion USD and
have also pledge to protect Intellectual property laws between 2020 and 2021.
However, data shows till now China has only been able to imports 58% of total
agreement and may seems failing to meet its agreement (BBC News. 2020).

The US has put many allegations against China for COVID-19 stating it is a Chinese
made virus, which was originated in Wuhan, China. It has also been said that the virus
was leaked from Chinese Lab in Wuhan and was a deliberated (CNBC Television,
2020). The US government has been using Corona virus linked to China as a
domination of Chinese’s status in the world. This is also one of the major strategies for
US to create negativism against Sovereignty of China. Particularly, former president
Donald Trump has spoken to many news channels calling it “the ‘Chinese Virus’ is not
racist at all, it comes from China” (Fisher, 2021). This negative news has sparked
across the world due to which many Chinese’s people living around the world are facing

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huge racism. There has been unfavorable opinion regarding China by many general
publics from developed countries such as the UK, Germany, the Netherland, Sweden,
Australia, South Korea, Spain, the US, and Canada. As per surveys in Australia, 81%
views China as bad country and in the UK three quarters of population took China in a
negative light (SILVER, DEVLIN and HUANG, 2020). This is not only the case, but
Chinese people have also been attacked, spat on face, bullied and so on around the
world. The victim from Chinese American in the US while walking to her Gym suddenly
a man came and started yelling at her stating China and Corona Virus and later, he
chased her and spit on her face (Tavernise and Oppel Jr., 2021). Moreover, this
pandemic has fuelled Anti-Asian racism and xenophobia all around the world, which has
left Chinese, and Chinese looked like face people life in threat Human Rights Watch.
2020. US has been successful in devaluing Chinese status and its fame in global
market creating negativism against them. However, Former President Mr. Trump ran
with a slogan “American First” to vaccinate all Americans and then other nation will have
access to American made vaccine. He signed executive order, the vaccine developed
by Moderna and Pfizer rolls out should be focus on domestic rather than other nations
(Higgins, 2021).

On the other hand, despite of all the allegations made from western nations, China did
not turn down themselves instead they have been prioritizing different nations to
distribute its self-made vaccine. It has also joined the COVID-19 Vaccine Global Access
(COVAX), which was initiated and facilitated by World Health Organization (WHO).
China has been committed to provide 46 million doses of its vaccine to Brazil, 50 million
doses to Turkey, 40 million to Indonesia, 35 million to Mexico and so on. The good
news of Chinese vaccines sparks to various developing nation who has been waiting to
welcome it (China Briefing News, 2020). They did not have any hope from Western
countries because they had already booked almost a year production from vaccine
companies for their own countries. However, China being generous and thinking about
humanity has donated vaccine to 53 developing nations across the world. Lebanon with
50, 000 shots, Uzbekistan’s with 75, 000 shots, Philippines with a hundred thousand

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shots and many more. Countries such as Pakistan, Cambodia, Mongolia, and
Philippines government are very grateful towards China and wanted to Visit China to
thank Chinese president for his support and love to developing nations
(Globaltimes.cn, 2021). China is wining the diplomacy to establish global influence. It
has been taking advantages on every stage like at present vaccine are the hottest
pathway to make a new connection and improve older around the world. America is
busy with vaccinating its population and Western world are fight each other. A Paraguay
government has clearly said that we are not going to hold on to the old loyalty and see
people losing life or go to cinema hall to US government as they restricted them to
embrace with China. Further, they stated, China is showing much and more interest to
help our nation. We want Support more than just a word (Merelli, 2021).

In sum, from the above-mentioned information and data, it is clear now, in coming
years, world will see more global powers. Despite many attempts from US, China is
showing countries from their work and support rather than just a word like US has been
doing. US seems more using monopoly power to make everything in its favor but on the
opposite China a leading nation is trying their best to support and make a good
diplomacy relation with most of the nations. They prove it by supplying and donating
most valuable things, ‘vaccine’ to poor and needy nations.

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References

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