The role of China's economic diplomacy in post-crisis

Abstract

With the 2008 collapse of Lehman Brothers, Europe and the USA have become engulfed by sovereign debt crises, a problem that many felt no longer applied to the advanced economies. The US sub-prime loan crisis caused so much damage to the whole world, resulting in the global economy experiencing a shift of economic power from the advance to newly emerging economies. During the post-crisis years, the US and European countries are still reeling on in different ways to solve the problems, and nearly are thrown into ‘Triple Crisis’, while China as an emerging economy keeps a rising way in the shadow of the global crisis. Economic diplomacy, as a key link, plays a significant role in China’s rising, successfully promoting its economic transition and growth, realising the balance of investment, consumption and export and balance of the different industries. This paper makes detailed analysis of the specific implementation of China’s economic diplomacy in the fields of foreign trade, FDI and fiscal finance, in the view of multilateral mechanism and regional cooperation.