China’s Financial Rise and Ramifications for United States of America’s Petrodollar Hegemony

Abstract

This article examines the pattern where China’s growing global economic influence in post-9/11 era has been complimented with the gradual and sustained rise of its monetary cooperation, competition as well as conflicts with United State of America (USA). While chronicling the Neoliberal and advanced capitalist arguments regarding the current international economic order and financial infrastructure led by the USA; this article refines the focuses on the global monetary system and the role of monetary coercion and builds a critical approach by engaging with Realist, Leftist-Marxist and antiimperialist theorisations with the objective to analyse the nature of cooperation and confrontation between the two states. The methodology employed is qualitative and interpretive supported with analysis of empirical data to substantiate the theoretical claims. It is argued that the rise of Chinese currency is related to these oft-recurring financial trends, which lie at the core of USA’s global economic system and the related global financial conflicts have the potential to fundamentally transform the global economic order. The paper concludes that China’s internationalisation of its currency is likely to intensify its confrontation with US with the potential for international conflict.