Year of the Dragon: navigating a multipolar world

As the Year of the Dragon begins, it brings opportunities and challenges for China, whose geopolitical dynamics are closely intertwined with global affairs.

Against the backdrop of the ongoing war in Ukraine and the conflict in Gaza, China is at a crossroads in shaping its relationships with major geographic regions such as the Americas, Europe, Russia, Africa, the Middle East and Asia.

The emerging multipolar world order, which highlights the decreasing influence of the unipolar paradigm, emphasizes the importance of China’s diplomatic skills in navigating these turbulent waters.

The rise of China, particularly its economic growth highlighted by its gross domestic product reaching US$17.52 trillion in 2023, has been a significant factor in the Sino-American relationship. However, political posturing and technological skirmishes began to take their toll as their trade fell to $664.4 billion in total volume for the first time in four years.

On the other hand, Washington’s trade deficit with Beijing fell to the lowest in 13 years and stood at $279.4 billion. Furthermore, China is the second-largest foreign owner of US debt, with $769.6 billion as of 2023.

So all of these highlight the interdependence of the world’s two largest economies and make managing their bilateral relationship with care and caution necessary. This will remain true no matter who is in charge of the White House after the upcoming presidential elections.

China and Europe

Last year marked the 20th anniversary of the comprehensive strategic partnership between China and the European Union, established in 2003, with trade reaching $800 billion that year.

Although Beijing’s economic prowess in the European theater has positioned it as a formidable