China’s rapid growth in last couple of decades since Deng Xiaoping started economic reforms in 1978 followed by the restructuring of its economy by Premier Zhu Rongji in 2001 when China joined WTO; helped generate disproportionate amount of wealth for the Chinese State. China has now emerged as second largest economy of the world1behind the US with four of the top ten most competitive financial centers2 and three out of the ten world’s largest stock exchanges.3It has become home to the largest companies in the Fortune Global 500 where 124 of them have headquarters in China.4
Most important facet of the Chinese economy is its desire to invest, lend the wealth it generates from the trade or to say “surplus trade”. Except the oil exporting Middle-Eastern Countries; trade surplus is in China’s favour with all of its trade partners.
Its gigantic engagement throughout the globe with countries spanning all five continents is unparalleled in nature which helps China grow in power and prestige. In this brief paper; we shall analyze China’s massive investment globally and how such strength of its economy can be manipulated to create deterrence for Indian State in future conflict with China.