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72 sats \ 1 reply \ @Solomonsatoshi 17 Feb \ parent \ on: China Now Wants To Encourage Entrepreneurs? econ
Can you think of any nation that can afford not to trade with China?
Can you name any nation that enjoys such massive trade surpluses with other nations?
Chinas economic growth has been built upon its size and scale and ability to clone western technology to its planned infrastructure and workforce giving it the ability to process and add value to raw materials and export them in a way that no other nations can compete with.
Chinas sphere of influence has of necessity grown as this process of unparalleled economic growth has occurred. Wealth brings complex obligations.
China must now secure the global trade routes, payments protocols and institutional dominance that its global trade dominance implies.
This is a difficult transition and obviously resisted by the west that has enjoyed global resource and institutional hegemony for centuries.
Looking at the results of the last 4-5 decades China has won the trade war- it can pay the best price for commodities and can export the manufactured goods those commodities are transformed into at the most competitive prices.
Chinas reverse engineering of western manufacturing processes has decimated western manufacturing capacity. China now controls the supply chains of most everyday manufactured product lines.
To move beyond winning the trade war China must logically gain greater control over the global institutions which western hegemony is built upon.
It was British banks based in Hong Kong backed by British military force that subjugated the Chinese economy and sovereignty to western resource hegemony.
China has not forgotten The Opium Wars.
Today China is reverse engineering the global trade payments routes via Hong Kong.
Increasingly Chinese trade with other nations is settled outside of USD/SWIFT system.
These alternative trade payments mechanisms are a direct challenge to US hegemony.
They already support Iran and Russia and increasingly BRICS and other nations.
China now finances far more global infrastructure investment than the World Bank.
China is building its tertiary Belt and Road institutions and protocols bypassing and competing with those of the west.
The west is in mostly denial about the scale and extent of this...certainly in terms of what is discussed in public/MSM narratives at least.
Trade and war are not distant cousins, they are siblings.
China appears to be continuing its advance as a rising empire gaining ground on a declining west.
Trumps appeasement of Putin is also a concession to China - without China buying the gas that Europe now does not get(but instead imports from USA and elsewhere) and without China enabling alternative trade payments to SWIFT, Russia would not have been able to continue its attack on Ukraine.
Ditto Iran.
China like all rising empires, has reached the stage where its growth requires global power projection- and it is forced to achieve it or falter in its growth.
Lots of food for thought. Thanks
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