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China's Role in Global Development Finance: China Challenge or Business as Usual?
Author(s) -
Babones Salvatore,
Åberg John H.S.,
Hodzi Obert
Publication year - 2020
Publication title -
global policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.602
H-Index - 33
eISSN - 1758-5899
pISSN - 1758-5880
DOI - 10.1111/1758-5899.12802
Subject(s) - china , corporate governance , opposition (politics) , economics , politics , chinese financial system , ambiguity , economic system , development economics , political science , finance , linguistics , philosophy , law
China's economic success has prompted both academic political economists and applied policy analysts to speculate about the implications of a new ‘China model’ of economic development and global economic governance. A particular issue is the degree to which the China model involves developing in opposition to or in cooperation with the pre‐existing norms of global economic governance. Recognizing the ambiguity of the China model, we consider two alternative interpretations of China's role in global economic governance: China Challenge (CC) and Business as Usual (BaU). We flesh out these contrasting interpretations using evidence from the lending behavior of four major development finance institutions in which China plays a leading or determinative role: the Asian Infrastructure Investment Bank (AIIB), the New Development Bank (NDB), the Silk Road Fund (SRF), and the China‐Africa Development Fund (CADF) of the China Development Bank. We find that (at least in the restricted domain of international development finance) China's role in global economic governance is largely characterized by BaU behavior, and although on a regional level this does represent a challenge to the historical role of Japan, it nonetheless suggests that the China model is not so revolutionary as many analysts suppose.