Financial Tsunami: Opportunities And Challenges In The Reconstruction Of World Order

Triggered by the sub-prime mortgage storm in the United States, the Financial Tsunami spread all over the world in late 2008 and became an world-wide crisis with the largest scale and the greatest influence even since the 1929 Great Depression. Under the blow of this Tsunami, some countries encountered their critical economic difficulties, especially the United States, who spent a lot on the wars in Afghanistan and Iraq so that its comprehensive national strength declined relatively. That means the privilege of the U.S Dollar, as the dominant currency in international exchange, faces great challenges again since the collapse of the Bretton Woods system in 1973. Even more, this Financial Tsunami, like the Depression in 1929, may change the comparative relations among the major international powers in the future. Accordingly, the obstacles ultimately on the way of reconstructing the new world order may thus to be eliminated. In fact, under the terrible circumstance in current days, the United States feels too hard to solve the problem unilaterally and too busy to deal with its own affairs, At the same time, the European Union, could do little but take protectionism steps in order to immune itself from the Tsunami. However, some new-rising economies try to catch up this opportunity in the interim period of a changing world order. They perform themselves actively on the international arena and strive to more chances of expressing their own voice in the future global economic cooperation. As one of the most important members among these economies, it would be of great importance to discuss how China find its opportunities in current Financial Tsunami, and walk out from this dilemma? These problems should be carefully considered and profoundly studied by Chinese people. Moreover, questions should be answer as below: How the new world order will be reconstructed? What kind of role should China play in this process? And how will China's status and influence become? In this article, first of all, it analyses the culprit of the global Financial Tsunami; next, it studies how the world will walk out from this crisis and deduces the way how to reconstruct the new world order. In addition, it points out some focuses that need to be concerned in this process.