Between Stability and Liberty: The Transformation of China and Its Controversial Impacts on the Global South in Times of Crises

Inspired by The Great Transformation written by Karl Polanyi, the author argues specifically that the transformation of China since 1978 is a fundamentally different process in comparison to that of Europe/North America. In particular, a process of public planning rather than nationwide social and market liberalization has shaped the trajectory of the transformation of China and its ability to overcome various crises. Largely, this ability reflects the determination of the government to make a trade-off between stability and liberty, hence embedding the markets in its societal contexts. Nevertheless, evidence from four crises that occurred between 1997 and 2021 (with the fourth crisis still ongoing) shows that the impact of China on the Global South (GS) in times of crises is increasing in controversy. For example, an increase in the external debt of the related countries to China and the associated commodification of their resources have led to concerns about future crises in the GS. The author argues that China could establish an instrumental rather than a ceremonial reciprocity with the GS to safeguard future possible crises.