China as leading Asian giant and her indispensability within BRICS

Abstract

China is unequivocally the “Leading Giant” of Brics Group. The rapid economic growth and expansion of influence throughout the whole Asian region inspires and accelerates the other Brics economies development. The countries are believed to “catch-up” Chinese growth- strategies and technologies. Foreign Direct Investments (FDI) from China are also very important. This paper focuses on China’s gains, her current position of a “Leading Giant” in Asian region, her goals, obstructions and indispensability within Brics. In 2001, the term ‘Bric’ was suggested by Goldman Sachs to symbolize the four big developing countries of Brazil, Russia, India, and China. In 2010 the group expanded following South Africa’s inclusion, to become the BRICS. The Brics countries display selected common characteristics. They are some of the biggest emerging markets economies – with high economic growth rates – inhabited by large populations, constituting strong consumption markets. In addition, they are bound by large geographical territories with a range of affluent natural resources (De Almeida, 2009). Economic activities in these countries also have significant ramifications on the rest of the world, considering their enormous economic strength and their contribution towards world GDP growth. Finally, the Brics countries have been globally integrating through trade and financial undertakings as they continue to play a significant role in the global economy.

Keywords: Brics; Foreign Direct Investments; Growth Domestic Product; macroeconomic management; rationality; commodities; social democracy; flying geese; development patterns