The Chinese development model: International development and hegemony

What is the appropriate role for the People's Republic of China (PRC or China) to play in the contemporary international political economy (IPE)? This chapter employs the discipline of IPE to explain the contemporary state market relationship from a historical perspective, and develops the thesis that China as a great power should take a more active responsibility in order to play a considerably larger role in the IPE. We cannot ignore the fact that today's IPE, because of liberal interdependence and the functions of the mercantilist security dilemma, links regional issues to global issues: given this set of circumstances, China must of necessity engage with the IPE. It is equally important to remember that, as a consequence of its relative size, Chinese development will impact profoundly on the development of all nation-states. The option facing all other nation-states, then, is to decide whether they will view China as an ally or as a threat to their own development. Of course, China does not have to remain passive while such decisions are made, but can strategically influence the choices other nation-states make.