US Strategic Response to Rising China and the Chinese Reaction: Impact on Northeast Asian Security Architecture

Abstract

China’s economic growth from 1980s to 2000s was remarkable.1 It increased its exports and brought more than 400 million people above the poverty line.2 By mid-2000s, there was hardly any noteworthy market in the world where “Made in China” products were not available.3 This “revolution of exports” helped China become the largest trading partner of the majority of East Asian countries including major US allies, Republic of Korea (ROK) and Japan.4 It replaced Japan as the second largest economy in 2010,5 and it replaced the US as the largest economy in terms of purchasing power parity (PPP) in 2014.6 Growing economic strength added to the confidence of Chinese leadership who played a decisive role in the establishment of Asian Infrastructure Investment Bank (AIIB) and New Development Bank (NDB).