Updating China’s Role in the World Economy: Economic Transformation and Its Policy Implications

Linyue Li

Abstract: When considering various interconnected internal and external factors as well as the volatility of macroeconomic variables from China, Europe, the United States, and other economies, obvious synergies appear through the transmission channels of international trade, international investment, and international finance, promoting policies of transnational relevance. China’s economic interaction with the world economy has been significantly strengthened through a system of two-way feedback. In the context of economic globalization and economic interdependence, how can Chinese policies be better coordinated with those of other countries, and how can China fully embrace the role of bilateral and multilateral power? What is the interaction mechanism and transmission of the Chinese business cycle in relation to the global business cycle, and what are the resulting policy implications? This paper investigates the evolution and nature of macroeconomic interdependence between China and other major players in the world economy in order to analyze China’s global economic role and aims to answer these questions theoretically and empirically.

Keywords: “One Belt And One Road”(OBAOR), economic transformation, business cycle transmission, China’s role, policy implications.

Pages: 412 – 425 | Full PDF Paper