On a bilateral basis, China has made large investments in developing infrastructure in resource-rich countries in Africa and Latin America
One of the topics informally discussed among delegates at the recent International Monetary Fund (IMF)/World Bank annual conference was how long the US would retain its present supremacy and status as the sole superpower on the globe. This status has two different origins: military and economic. As for the former, the status is likely to be retained for the foreseeable future. Question marks are, however, being raised about the latter given that, at least in purchasing power parity terms, China is now the world’s largest economy, even as US economic power is increasingly hamstrung by the divide between the President and the Congress, as also pressures on its fiscal resources. Arvind Subramanian, chief economic adviser, government of India, has been quoted as saying, “People can’t be too public about these things, but I would argue this is the single most important issue of these spring meetings." One important, if symbolic, test will come when IMF’s special drawing rights basket is reviewed next year: will the yuan, the world’s fifth largest invoicing currency, be included?