At least 12 years ago, and probably much longer, the Chinese government saw the writing on the wall: The United States was beginning to show greater signs of a bipolar electorate, of nationalism, and right-wing populism. Since then, China has built economic relationships with 65% of the world's nations, and reduced its total exports to the United States to 14.8%. Today, whatever tarrifs we impose on Chinese exports only applies to less than 15% of China's total exports. Our economic impact on China is much less than it once was.
China started the Belt and Road Initiative, to help other countries build land and sea trade infrastructure that would reduce the overall price of trade. Through this initiative, China provides grants and loans to disadvantaged countries for building this infrastructure. To date, they have trading infrastructure relationships with more than 150 countries, and growing. China has invested over a trillion dollars in the Belt And Road project, and plans to invest trillions more. Last year, China invested $70 billion in this project.
Some US citizens first learned about the Belt And Road Initiative when Trump bullied Panama into forsaking the initiative, which at least for now, has made Trump forget about the forced takeover of the Panama Canal. Unfortunately, the promises Trump almost certainly made, to help with the infrastructure projects, will almost certainly never come to pass.
The United States saw the writing on the wall during the Obama administration, and President Obama began forming an organization that would compete with China's Belt and Road project. This was formalized under President Trump's first administration as the International Development Finance Corporation, and during its years of operation, the US has invested $49 billion in international trade development. It's current budget is $1 billion per year.
China invests $70 billion while the United States invests $1 billion.
China is winning the war of public influence with the whole world, because they are investing in the economic well-being of other countries. This influence will only increase as the United States under President Trump continues to shut down various foreign aid programs.
In a recent article from China's state owned news company, the writer states, "China is a save haven to hedge against the uncertainty of the United States...facing the US's abuse of tariffs, we have a clear mind and a plan...The Party Central Committee has already predicted that the US will implement a new round of economic and trade containment on China, and has fully estimated the impact it may cause. The response plan is well prepared and has sufficient amount of advance and surplus...We must turn pressure into motivation, and regard responding to the US impact as a strategic opportunity to accelerate a new development pattern, promote high quality development, and promote economic structural adjustment..."
The article goes on like that. It doesn't seem Chinese spirits are down. It seems instead that they are thrilled for the opportunity to fill the vacuum of power left behind as the United States continues to act like a mentally ill alcoholic.
https://www.visualcapitalist.com/visualizing-chinas-dependence-on-u-s-trade/#:~:text=For%20decades%2C%20the%20United%20States,showing%20notable%20U.S.%20market%20share.
Comments
Post a Comment