(I) The rise of Chinese economy as a result of new economic policies have greatly contributed to the rise of Chinese economy as an alternative center of power in the world. The current strength of Chinese economy is as follows:
• China has been the fastest growing economy since the reforms first began there. It is projected to overtake US as the world’s largest economy by 2040.
• Its economic integration into the region makes it the driver of East Asian growth, thereby giving it an enormous influence in regional affairs.
• Regionally and globally, china has become an economic power to reckon with. The integration of the china’s economy and the interdependencies that that this has created have enabled China to have considerable with its trade partners like Japan, US, ASEAN and Russia.
(II) The two strategies to deal with US hegemony are:
- Bandwagon strategy: It is suggested that instead of engaging in activities opposed to the hegemonic power, it may be advisable to extract benefits by operating within the hegemonic system. This is called the ‘bandwagon strategy’.
- Strategy to ‘hide’: This implies staying as far as possible removed from the dominant power. There are many examples of this behavior- China, Russia, EU – all of them, in different ways , are seeking to stay below the radar and not overly and unduly antagonize US.