Introduction to International Politics
Foreign Event Analysis
| Locale | ![[]](http://www.kvasaheim.com/flags/flag15-cn.png "Flag of China") | China |
|---|---|---|
| Title |
China and the Economic Crisis
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| Summary |
Chinese Premier Wen Jiabao says the effect of the global financial crisis on China is “worse than expected.” China’s economic expansion has slowed this year due to slowing export and investment growth. Although, the current international financial crisis will not affect China’s cooperation with Seychelles and their hopes to enhance inter-parliamentary exchanges together. The president of Seychellois has been briefed on policies that the Chinese government has adopted to deal with the crisis, promising that China will continue to offer its help to Seychelles according to its own capability.
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| Analysis |
Interaction with Seychellios will be beneficial for both China and Seychellios. As a result of China being willing to deepen all-round cooperation with this small nation, both will prosper. Seychellios will now gain a connection to one of the world’s leading nations while China will gain access to and help economic development in Seychellios.
China fears that increasing unemployment as a result of the financial crisis will lead to social instability. To offset the slowdown, China introduced the idea of cutting interest rates, seeing that the government loosen credit controls, spend more on infrastructure projects, and cut taxes. While these actions seem to be good solutions, China needs to focus more on interaction between states. Maintaining and improving trade with other states will be most beneficial for China’s success through the financial crisis. Increasing interaction will lead to increased interdependence, in effect maintaining peace and improving China’s economy.
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| Perspective |  | Liberal |
| In-Region URL | ||
| Out-of-Region URL | ||
| Submitted | November 13, 2008 at 8:15 pm | |
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