Opinion from a Libertarian ViewPoint

China’s Turn – LewRockwell

Posted by M. C. on March 3, 2023

So, the question is: Aren’t we blaming China for policies that were pushed through by powerful corporations and their plutocrat bosses?

It certainly looks that way. And, if that is the case, then we can assume that Washington’s drive to war is not fueled by anxiety over which country’s economy will be bigger than the others, but by the Chinese government’s resistence to the political meddling and machinations of foreign oligarchs.

By Mike Whitney
The Unz Review

Americas Hyper-Financialized Economic System Is No Match for China’s Government-Directed Investment Model. Regrettably, China’s Explosive Growth Is Pushing a Desperate Washington Closer to War.

Ukraine is the first flashpoint in a great power struggle between the United States and China. After years of shifting its industries to low-wage locations around the world, the US finds itself steadliy losing market-share to a faster-growing and more resourceful China. By most estimates, China’s economy will overtake the United States by 2035 at which point, Beijing will be in a much better position to shape international trade relations in a way that promotes its own interests. With growth, comes power, and that rule will certainly apply to China as well. China has emerged as an industrial powerhouse that sits at the very epicenter of the most populous and fastest growing region in the world. It is for that reason that the United States has initiated a series of provocations on the island of Taiwan and in the South China Sea. The US has abandoned all hope of prevailing over China through conventional free market competition. Instead, the US plans to engage China militarily in a desperate attempt to drain its resources, garner broader support for economic sanctions and isolate isolate China from its regional trading partners. It is a risky and disruptive plan that could backfire spectacularly, but Washington is moving forward regardless. US foreign policy mandarins and their globalist allies will not accept an outcome in which China is the world’s biggest and most powerful economy. This is from an article at China Macro Economy:

Although the pace of China’s economic rise has slowed in recent years, it appears on track to end the United States’ lengthy run as the world’s largest economy by around 2035, according to the latest projection by economists at Goldman Sachs.

The new estimate is 10 years later than the investment bank had predicted in 2011. But economists Kevin Daly and Tadas Gedminas said that potential growth in China still remains significantly higher than in the US.

“China has already closed most of the gap with US GDP,” they said in a report published on Tuesday, adding that China’s gross domestic product has risen from 12 per cent of the US’ in 2000 to a little under 80 per cent.

China’s annual economic growth will be around 4 per cent from 2024 to 2029, compared with 1.9 per cent in the US, according to the report, which projects what the global economy will look like through 2075….

The US dollar’s exceptional strength over the past 10 years is another reason for the 10-year revision in when China’s economy will become No 1, Daly added… But the US dollar’s strength versus the Chinese yuan is likely to diminish over the coming decade, providing more ground for China to overtake the US, according to the report.

The report also projected that the weight of global GDP will shift more towards Asia over the next 30 years, and that the world’s five largest economies in 2050 will be China, the United States, India, Indonesia and Germany.” (“China GDP to surpass US around 2035, years later than previously expected, Goldman Sachs predicts”, China Macro Economy)

Naturally, the financialization of the US economy has greatly impacted America’s prospects for the future. The rise of Wall Street has led to a myriad of debt-leveraging scams that have enriched a handfull of wealthy bankers while diverting trillions in capital to unproductive activities. At the same time, the absence of any coherent industrial policy has triggered the flight of tens of thousands of businesses and factories that relocated to countries that offer an endless supply of low-wage labor. The problem, of course, is that mounting policy errors eventually lead to a drop-off in productivity which allows other, more ambitious countries to fill the void. In short, the Chinese Miracle is largely attributable to financialization and the short-sighted policies that allowed US corporations to move their industries elsewhere rather than provide incentives for them to stay in America. Bottom line: China’s economy is overtaking the US and there is nothing short of nuclear war that can reverse that situation.

In recent weeks, there has been a steady uptick in negative coverage of China in the media along with the predictable attacks on President Xi Jinping. Americans have seen this show many times before and should have a clear understanding of what it means. The demonization of foreign leaders is always the first step towards war. The media led the charge against Saddam, Qaddafi, Milosevic, Putin and countless others. Now China’s Jinping is in the imperial crosshairs. The names change, but the process remains the same. Already, the provocations, sanctions and slanders have begun to pile-up even while brainwashed Americans are led by-the-nose to another bloody conflict.

If there is a war between the two countries, the economic fallout is likely to be catastrophic. Consider, for a minute, how many American and European companies would be severely impacted by a US-China conflict. Here’s an excerpt from an article at Registration China:

By the end of 2020, a total of 1,040,480 foreign companies were registered in Mainland China, the Official data was provided by the Ministry of Commerce (MOFCOM)…. According to the official data, China had established a total of 961,000 Foreign-Invested Enterprises (FIE) until the end of 2018, with the actual use of foreign capital of US $2.1 trillion…. The results show that the number of foreign-invested enterprises is keep on increasing in 2021… (“How many Foreign Companies in China?”, GWBMA

1 million foreign-owned companies in China? That is simply astonishing.

See the rest here

Be seeing you


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