Neo-Mercantilist Policy and China’s Rise as a Global Power

Abstract

This chapter argues that China is adopting Neo-Mercantilist policies in its national development and global expansion. China’s Neo-Mercantilist strategies include promoting nationalism and patriotism, stockpiling gold and foreign reserves and striving for favorable balance of payment via exchange rate manipulation, tariff, export subsidies and other trade protections. The Chinese government also controls population growth for national development and social control, initiates “Belt and Road” project and the Asian Infrastructure Investment Bank (AIIB) to counter American and Western influences and deploys strategic expansion in Africa, South Asia and Latin American countries. China’s economic success through Neo-Mercantilist strategies may provide an incentive for other Asian developing nations such as the Philippines to follow.