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In the coming decades, “as the two powers grow, they are bound to change the current international system-with profound implications for themselves, the US, and the world,” says a new publication of the Carnegie Endowment for International Peace.
The Carnegie Endowment for International Peace is a US foreign policy think-tank with historical ties to the US state.
“And whether they agree on the changes to be made, especially when it comes to their relationship with the West, will influence the system’s future character,” says the publication, Crux of Asia: China, India, and the Emerging Global Order.
“China and India’s sustained economic growth fuels their increasing geopolitical and military influence,” says the publication.
Trade figures from 2011 reveal China has long overtaken the US as a leading trading partner in the world.
Around 124 countries consider China their largest trading partner and only 76 countries have the US as their largest trading partner.
China grew at 7.2 per cent in 2012 with growth projections for 2013 being 8.6 per cent according to HSBC.
“We are moving away from a US-or Europe-led world to a world led by China,” Stephen King, HSBC’s chief economist, wrote in an Emerging Markets Index report published yesterday.
“China will make its biggest-ever contribution to global growth in 2014,” King said, in what he termed a “great rotation”.
The Chief Economist of the World Bank, Kaushik Basu has forecast a six per cent growth for India in 2013.
Though being below its long-term averages the two countries growth looked much healthier than the EU, where Eurostat – the region’s key statistics service – projects its GDP plunge to – 0.3 per cent in 2012.