ECONOMIC RISE OF CHINA AND GEOECONOMICS OF SOUTH CHINA SEA

Abstract

China is the second largest economy of the world in terms of Gross Domestic Product (GDP) while
the largest economy in terms of purchasing power parity (PPP). China is the largest manufacturing
economy as well as the largest exporter of goods. Much of China’s trade goes through sea routs;
approximately 80 percent of its trade predominantly the energy resources pass through South
China Sea. For its geostrategic location and abundance of resources South China Sea holds central
position in foreign as well as internal affairs of China. The Theory of Geoeconomics is applied to
understand China’s tremendous growth at multiple fronts and the threshold of the growth
predicted for setting up a stage to change the global power hierarchy. It has been analyzed that
China’s claims on vast portion of the South China Sea, either legal, illegal or historical are closely
connected with its economic development and prosperity in broader context of geo-economics. This
study employs descriptive, qualitative and analytical approach to explain the dynamics of South
China Sea along with development of China grabbing much global attention.