China and the US: A Growing Threat
The United States and China have a complex and potentially dangerous relationship, with many issues driving friction between the two superpowers. Tensions have been escalating in recent years, leading to an increasing possibility of military conflict over the Taiwan issue. While both countries are formidable in their own right, it is apparent that there are power imbalances and challenges that make the situation volatile.
China’s Issues and COVID-19
At present, China faces several significant challenges, including poverty, environmental problems, and a massive property bubble. Additionally, the COVID-19 pandemic has hit China hard, with significant effects on their economy, healthcare systems, and people. Despite the availability of vaccines, there has been widespread skepticism among the Chinese population about getting vaccinated, which has made the situation worse.
The conflict between the US and China has taken different forms, including economic and technological warfare. The US views China as a major threat in these areas, with trade wars leading to technology wars, which, in turn, can become geopolitical influence wars. Additionally, the US has levied various sanctions against China, which could ultimately lead to economic and capital warfare. Potentially, this could also trigger military conflict.
The United States and China’s Debt
Despite the ongoing economic tensions between the US and China, the latter continues to hold a significant amount of American debt. Some believe that China could use this leverage to pressure the US economically. However, others argue that China may not want to sell off this debt since doing so would cause the value of the dollar to depreciate. Moreover, with China’s ability to produce inexpensively, they can lend money to the US, making themselves a more significant economic force in the world.
China’s Position in International Trade and Lending
China remains the largest trading country globally and is also the largest lender in terms of international lending. It has lent money to the US and bought its bonds, increasing its per capita income by 27 times since 1984. While many agree that China has significant economic power, there is also a need to address potential challenges related to imbalances in trade and lending.
The current Chinese leadership’s objective is to build its country’s wealth and power as much as possible without disrupting the current world order. China is advocating for a tribute system whereby every country knows its place and can operate harmoniously. While this approach may seem ideal, it raises concerns about the suppression of individual liberties, such as freedom of speech and assembly, under such a system.
Chinese Culture and Systems
There is no question that China has a unique cultural perspective, with different beliefs and approaches to governance compared to other countries. Within China, individuals can be punished for the actions of groups, and there is a great deal of paranoia about maintaining power within the Communist Party. Operating in a hierarchical, top-down manner, the Chinese Communist Party is unlike any political party in any other country, which can impact foreign relations significantly.
China’s Approach to Democracy and Capitalism
One of the significant challenges in the US and China’s relationship is the fundamental difference in their beliefs and values. Democracy and capitalism are deeply held religious beliefs that are challenging to change, and it is unlikely that either country will compromise its beliefs or approach to these issues. Therefore, reconciling these differences is one of the foremost challenges facing US-China relations.
Learning from Historical Studies
Given the complexities of the US-China relationship, the speaker suggests that everyone with a connection to these countries should seek guidance from both governments and historical studies. Looking back on the lessons of history can provide valuable insights that can help navigate the complex global landscape in a manner that is beneficial for both sides. For businesses, it is essential to consider their impact on both countries and how their actions can affect bilateral relations both positively and negatively.
China’s Success and Creativity
Despite the challenges that China faces, it has remained successful in several areas. Broad-based education and a meritocracy prevent corruption and promote capable leaders. Based on hard work, meritocracy, and being highly civilized, China has been creative throughout its history, which continues to this day.
The Balance between State Capitalism and Disorder
China’s entrepreneurship culture is typically capitalistic, and this has undoubtedly driven the country’s success. China’s leaders are seeking to find a balance between state capitalism and disorder while also creating more opportunities for entrepreneurship. However, challenges remain in ensuring that both interests can coexist and that individual freedoms and liberties can be protected.
Dissent in China
One of the issues that plague the US-China relationship is the difference in approach to dissent. In the US, open dissent is common, while in China, it exists more under the surface. Nevertheless, people power and other forms of dissent can foment and drive political and economic change, even in a seemingly rigid system.
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Caroline wrote this article after watching the video ‘”China’s Financial Collapse Is FAR Worse Than You Think… Ray Dalio’. All the images above are screenshots from the original video. Source: Youtube.