![]() A crucial turning point came in late 1971, when the PRC was seated in the United Nations. However, a changing international environment, along with shifting interests in Washington and Beijing, generated new possibilities. Non-aligned countries occasionally had pressured the US to expel Taiwan from these organizations, with no success. In the interim, however, there appeared to be little likelihood that Beijing would be admitted to the IMF and World Bank. Thus, 1972 was neither the first step in the journey nor a spontaneous moment. Yet, as China’s domestic and international circumstances changed over the years, Beijing initiated efforts, including the American president’s visit, that were intended to recreate, under different historical circumstances, the spirit of Bretton Woods. By the early 1950s, any chance of collaboration was gone. Hence, it was decided that Chiang’s government would retain China’s seats in the IMF and the World Bank. Yet, Mao’s proclamation that the nation would “lean to side of socialism” and the outbreak of the Cold War made it clear that reconciling differences would be challenging. Indeed, in 1944, the CCP had not opposed economic collaboration with the United States and the newly established IMF and World Bank. While the establishment of the PRC in 1949 impacted China’s approach, it would be inaccurate to argue that the new government was uninterested or unwilling to cooperate, on an equal footing, with Western liberal institutions created at Bretton Woods. As long as the inclusive spirit of Bretton Woods system flourished, this all seemed doable. Such efforts reflect the Chinese quest to modernize their economy and a desire to play an important role in the creation of postwar norms and institutions. Given its own domestic situation, the Chinese grew particularly interested in obtaining help to stabilize currency exchanges in the face of rampant inflation and the economic disasters the war had generated. Shortly after the Pacific War ended, China found itself in a bloody civil war pitting the Nationalist government of Chiang Kai-shek against Mao Zedong and the Chinese Communists Party (CCP). China’s representatives fully supported the need for global organizations that would have a role in controlling monetary policy and the flow of capital, provide assistance to developing countries, and move to address the pre-war hierarchies among states. ![]() Far from being a disinterested party, the Chinese delegation at Bretton Woods was second in size only to that of the United States and Chinese officials played an active role in the creation of the IMF and of the World Bank. In July 1944, at the time of the Bretton Woods Conference, the Nationalist government was in the midst of its war of resistance against Japan, fought with the help of the Communists too. The founder of modern China, Sun Yat-Sen, made this clear in 1918. Likewise, that Beijing desired to use multilateral institutions to channel capital for the improvement of its people’s standard of living was also not new. That modern China wanted to matter and actively be engaged in the international system was not surprising. We must locate it within the larger trends that were in motion in the post-WWII world and, more broadly, during 20th century history.Įven prior to the establishment of the PRC, China’s desire to be part of the global economic system had been a recurring feature in the history of 20th century global economic governance. Fully understanding China’s engagement with the global economy and, more broadly, with the non-socialist international system, requires moving beyond that brief moment in February, 1972. ![]() Yet, this first step in US-PRC rapprochement has obscured the equally important tale of Beijing’s initial engagement with the World Bank and the IMF. ![]() Not surprisingly, the Nixon trip-the secrecy surrounding its preparation, the media coverage it attracted, and the geo-strategic consequences it yielded-has captured tremendous attention from historians over the past five decades. What consequences did the Nixon trip produce in that regard? Was it as decisive as it was for Sino-American relations? While the 50th anniversary of that visit is important in terms of Sino-American relations, it also represents the beginning of the less-discussed history of China’s engagement with multilateral economic institutions, particularly, with the International Monetary Fund (IMF) and the World Bank-the Bretton Woods institutions. Often heralded as marking the start of a significant shift in the People’s Republic of China’s (PRC) relationship with the world, Richard Nixon’s journey to that country in February 1972 came in the midst of an on-going effort and vision: China’s (long-held) desire to be a part of the global economy. By Federico Pachetti, Corvinus Institute of Advanced Studies
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