China, International Finance, and the Global Economic Order

China's approach to international finance is shaped by both its domestic political economy and a desire to increase its global influence. The prevailing economic model in China, which combines state control with market dynamism, means that China's preferences over the global governance of finance are sometimes at odds with the liberal principles embedded in the global financial order. Moreover, economic competition and geopolitical rivalry with the United States, the main architect of the global financial order, often shape China's engagement with existing rules and institutions. While China has challenged and disrupted some aspects of the international financial order, including the dominance of the US dollar and approaches to international development finance, it has been a largely supportive reformer in other domains, such as the global financial safety net. China's influence on the economic order in international finance generates important spillovers for other emerging and developing economies, creating both opportunities and challenges.