BANGLADESH INSTITUTE OF INTERNATIONAL AND STRATEGIC STUDIES

IMPACT OF THE GLOBAL FINANCIAL CRISIS 2007-08 ON THE US AND CHINA: IMPLICATIONS FOR GLOBAL POLITICS

Author: Benuka Ferdousi

DOI Link: https://www.doi.org/10.56888/BIISSj2011v32n2a4

ABSTRACT

The Global Financial Crisis 2007-08, originated from the sub-prime mortgage crisis in the US, dipped the world economy to a level worst since World War II. Both the developed and developing economies were hit by the crisis although in varying magnitudes. The present article makes an attempt to compare impact of the crisis on the US and China. It shows that China was less affected by the crisis although structural flaws have made both countries exposed to such crisis. It concludes that although the crisis will diminish the power of the US, it will neither replace the US with China as the next super-power nor lead to a bi-polar world led by the US and China; rather it will lead to a fragmented, multi-polar world.