China has surpassed the US as the world's largest creditor. Beijing must now take on the accompanying leadership role. Instead of a 'Marshall Plan,' why not a 'Hu Jintao plan' that recycles some of China's surplus to benefit the whole global system?
When the now 88-year-old Henry Kissinger sat down with Chairman Mao to discuss opening up China back in the 1970s, America was at the peak of its power. It surely never entered Mr. Kissinger’s mind at the time that less than half a century later, as the Communist Party of China confidently celebrates its 90th anniversary, he would be back in Beijing passing the baton of global leadership on to his hosts.
Opening a conference of China’s most important think tank on globalization last Saturday, the great statesman compared China today to the US in 1947.
After the Napoleonic Wars, Kissinger observed, Britain emerged as the top world power and stayed that way for over a century. But by 1947, Ernest Bevin, foreign secretary in the waning days of the empire, felt compelled to tell his American counterpart that, “as the largest creditor, the US must now take the lead in shaping the new order.” Hence the Marshall Plan launched by the Americans to rebuild after the war, the dominant role of the dollar, and America’s ascendant path for the rest of the 20th century.
As the world’s largest creditor, China is now where America was in 1947, on the cusp of the next world order. Kissinger told his hosts that while this transition from one system to another will likely take another 30 years, China’s role will only grow because it is obliged by its own self-interest to shape the global system that has shifted away from its “North Atlantic pole” toward China and the emerging economies.
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