Tag: China

  • China’s economy is still far out growing the U.S. – contrary to Western media “fake news”

    China’s economy is still far out growing the U.S. – contrary to Western media “fake news”

    GDP data for China, the U.S., and the other G7 countries for the year 2023 has now been published. This makes possible an accurate assessment of China’s, the U.S., and major economies performance—both in terms of China’s domestic goals and international comparisons. There are two key reasons this is important.

    • First for China’s domestic reasons: to achieve a balanced estimate of China’s socialist economic situation and therefore the tasks it faces.
    • Second, because the U.S. has launched a quite extraordinary propaganda campaign, including numerous straightforward factual falsifications, to attempt to conceal the real international economic facts.

    The factual situation is that China’s economy, as it heads into 2024, has far outgrown all other major comparable economies. This reality is in total contradiction to claims in the U.S. media. This in turn, therefore, demonstrates the extraordinary distortions and falsifications in the U.S. media about this situation. It confirms that, with a few honourable exceptions, Western economic journalism is primarily dominated by, in some cases quite extraordinary, “fake news” rather than any objective analysis. Both for understanding the economic situation, and the degree of distortion in the U.S. media, it is therefore necessary to establish the facts of current international developments

    China’s growth targets

    Starting with China’s strategic domestic criteria, it has set clear goals for its economic development over the next period which will complete its transition from a “developing” to a “high-income” economy by World Bank international standards. In precise numbers, in 2020’s discussion around the 14th Five Year plan, it was concluded that for China by 2035: “It is entirely possible to double the total or per capita income”. Such a result would mean China decisively overcoming the alleged “middle income trap” and, as the 20th Party Congress stated, China reaching the level of a “medium-developed country by 2035”.

    In contrast, a recent series of Western reports, widely used in anti-China propaganda, claim that China’s economy will experience sharp slowdown and will fail to reach its targets.

    Self-evidently which of these outcomes is achieved is of fundamental importance for China’s entire national rejuvenation and construction of socialism—as Xi Jinping stated, China’s: “path takes economic development as the central task, and brings along economic, political, cultural, social, ecological and other forms of progress.” But the outcome also affects the entire global economy—for example, a recent article by the chair of Rockefeller International, published in the Financial Times, made the claim that what was occurring was China’s “economy… losing share to its peers”. The Wall Street journal asserted: “China’s economy limps into 2024” whereas in contrast the U.S. was marked by a “resilient domestic economy.” The British Daily Telegraph proclaimed China has a “stagnant economy”. The Washington Postheadlined that: “Falling inflation, rising growth give U.S. the world’s best recovery” with the article claiming: “in the United States… the surprisingly strong economy is outperforming all of its major trading partners.” This is allegedly because: “Through the end of September, it was more than 7 percent larger than before the pandemic. That was more than twice Japan’s gain and far better than Germany’s anaemic 0.3 percent increase.” Numerous similar claims could be quoted from the U.S. media.

    U.S. use of “fake news”

    Reading U.S. media claims on these issues, and comparing them to the facts. it is impossible to avoid the conclusion that what is involved is deliberate “fake news” for propaganda purposes—as will be seen, the only alternative explanation is that it is disgracefully sloppy journalism that should not appear in supposedly “quality” media. For example, it is simply absurdly untrue, genuinely “fake news”, that the U.S. is “outperforming all of its major trading partners”, or that China has a “stagnant economy”. Anyone who bothers to consult the facts, an elementary requirement for a journalist, can easily find out that such claims are entirely false—as will be shown in detail below.

    To first give an example regarding U.S. domestic reports, before dealing with international aspects, a distortion of U.S. economic growth in 2023 was so widely reported in the U.S. media that it is again hard to avoid the conclusion that this was a deliberate misrepresentation to present an exaggerated view of U.S. economic performance. Factually, the U.S. Bureau of Economic Analysis, the U.S. official statistics agency for economic growth, reported that U.S. GDP in 2023 rose by 2.5%—for comparison China’s GDP increased by 5.2%. But a series of U.S. media outlets, starting with the Wall Street Journal, instead proclaimedthat the “U.S. economy grew 3.1% over the last year”.

    This “fake news” on U.S. growth was created by statistical “cherry picking”. In this case comparing only the last quarter of 2023 with the last quarter of 2022, which was an increase of 3.1%, but not by taking GDP growth in the year as a whole “last year”. But U.S. growth in the earlier part of 2023 was far weaker than in the 4th quarter—year on year growth in the 1stquarter was only 1.7% and in the 2nd quarter only 2.4%. Taking into account this weak growth in the first part of the year, and stronger growth in the second, U.S. growth for the year as a whole was only 2.5%—not 3.1%. As it is perfectly easy to look up the actual annual figure, which was precisely published by the U.S. statistical authorities, it is hard to avoid the conclusion that this was a deliberate distortion in the U.S. media to falsely present a higher U.S. growth rate in 2023 than the reality.

    It may be noted that even if U.S. GDP growth had been 3.1% then China’s was much higher at 5.2%. But the real data makes it transparently clear that China’s economy grew more than twice as fast as the U.S. in 2023—showing at a glance that claims that the U.S. is “outperforming all of its major trading partners”, or that China has a “stagnant economy” were entirely “fake news”.

    Many more examples of U.S. media false claims could be given, but the best way to see the overall situation is to systematically present the overall facts of growth in the major economies.

    What China has to do to achieve its 2035 goals

    Turning first to assessing China’s economic performance, compared to its own strategic goals of doubling GDP and per capita GDP between 2020 and 2035, it should be noted that in 2022 China’s population declined by 0.1% and this fall is expected to continue—the UN projects China’s population will decline by an average 0.1% a year between 2020 and 2035. Therefore, in economic growth terms, the goal of doubling GDP growth to 2035 is slightly more challenging than the per capita target and will be concentrated on here—if China’stotal GDP goal is achieved then the per capita GDP one will necessarily be exceeded.

    To make an international comparison of China’s growth projections compared with the U.S., the U.S. Congressional Budget Office (CBO), responsible for the official growth projections for the U.S. economy on which its government’s policies rely, estimates there will be 1.8% annual average U.S. GDP growth between 2023 and 2023—with this falling to 1.6% from 2034 onwards. This figure is slightly below the current U.S. 12-year long term annual average GDP growth of 2.3%—12 being the number of years from 2023 to 2035. To avoid any suggestion of bias against the U.S., and in favour of China, in international comparisons here the higher U.S. number of 2.3% will be used.

    The results of such figures are that if China hits its growth target for 2035, and the U.S. continues to grow at 2.3%, then between 2020 and 2035 China’s economy will grow by 100% and the U.S. by 41%—see Figure 1. Therefore, from 2020 to 2035, China’s economy would grow slightly more than two and a half times as fast as the U.S.

    The strategic consequences of China’s economic growth rate

    The international implications of any such growth outcomes were succinctly summarised by Martin Wolf, chief economics commentator of the Financial Times. If China’s economy continues to grow substantially faster than Western ones, and it achieves the status of a “medium-developed country by 2035”, then, in addition to achieving high domestic living standards, China’s will become by far the world’s largest economy. As Wolf put it: “The implications can be seen in quite a simple way. According to the IMF, China’s gross domestic product per head (measured at purchasing power) was 28 per cent of U.S. levels in 2022. This is almost exactly half of Poland’s relative GDP per head… Now, suppose its [China’s] relative GDP per head doubled, to match Poland’s. Then its GDP would be more than double that of the U.S. and bigger than that of the U.S. and EU together.” By 2035 such a process would not be completed on the growth rates already given, and measuring by Wolf’s chosen measure of purchasing power parities (PPPs) China’s economy by 2035 would be 60% bigger than that of the U.S. But even that would make China by far the world’s largest economy.

    Wolf equally accurately notes that the only way that such an outcome would be prevented from occurring is if China’s economy slows down to the growth rate of a Western economy such as the U.S. Clearly, if China’s economic growth slows to that of a Western economy, then, naturally, China will never catch up with the West—it will necessarily simply stay the same distance behind. Therefore. as Wolf accurately puts it the outcomes are:

    What is the economic future of China? Will it become a high-income economy and so, inevitably, the largest in the world for an extended period, or will it be stuck in the ‘middle income’ trap, with growth comparable to that of the U.S.?

    The progress in achieving China’s strategic economic goals

    Turning to the precise figure required to achieve China’s 2035 target, China’s goal of doubling GDP required average annual growth of at least 4.7% a year between 2020 and 2035. So far China, as Figure 1 shows, is ahead of this goal—annual average growth in 2020-2022 was 5.7%, meaning that from 2023-2035 annual average 4.6% growth is now required.

    China’ 5.2% GDP increase in 2023 therefore once again exceeded the required 4.6% growth rate to achieve its 2035 goal—as shown in Figure 1. From 2020 to 2023 the required total increase in China’s GDP to hit its 2035 target was 14.9%, whereas in fact its growth was 17.5%. This is in line with the 45-year record since 1978’s Reform and Opening Up, during which entire period the medium/long term targets set by China have always been exceeded.

    Therefore. to summarise, there is no sign whatever in 2023, or indeed in the period since 2020, that China will fail to meet its target of doubling GDP between 2020 and 2035—China is ahead of this target. Such a 4.6% growth rate would easily ensure China becomes a high-income economy by World Bank criteria well before 2035—the present criteria for this being per capita income of $13,846.

    It should be noted, as discussed in in detail below, that a clear international conclusion flows from this necessary 4.6% annual average growth rate for China to achieve its strategic goals. It means that China must continue to grow much faster than the Western economies throughout this period to 2035—that is in line with China’s current trend. However, if China were to slow down to the growth rate of a Western economy, then it will fail to achieve its strategic goals to 2035, may not succeed in becoming a high income economy, and will necessarily remain the same distance behind the West as now. The implications of this will be considered below.

    Systematic comparisons not “cherry picking”

    Having considered China’s performance in 2023 terms of achieving its own domestic strategic goals we will now turn to actual results and a comparison of China with other international economies. This immediately shows the factual absurdity, the pure “fake news” of claims such as that the U.S. has “the world’s best recovery“ and “the United States… is outperforming all of its major trading partners.” On the contrary China has continued to far outgrow the U.S. economy not only in 2023 but in the entire last period. China’s outperformance of the other major Western economies, the G7, is even greater that of the U.S.

    Entirely misleading claims regarding such international comparisons, used for propaganda as opposed to serious analysis, are sometimes made because data is taken from extremely short periods of time which are taken out of context—unrepresentative statistical “cherry picking” or, as Lenin put it, a statistical “dirty business”. Such a method is always erroneous, but it is particularly so during periods which were affected by the impact of the Covid pandemic as these caused extremely violent short-term economic fluctuations related to lock downs and similar measures. China’s assertion of superior growth is based on its overall performance, not an absurd claim that it outperforms every other economy, on every single measure, in every single period! Therefore, in making international comparisons, the most suitable period to take is that for since the beginning of the pandemic up to the latest available GDP data. As comparison of China with the U.S. is the most commonly made one, and particularly concentrated on by the U.S. media campaign, this will be considered first.

    China’s and the U.S.’s growth in 2023

    It was already noted that in 2023 China’s GDP grew by 5.2% and the U.S. by 2.5%—China’s economy growing more than twice as fast as the U.S. But it should also be observed that 2023 was an above trend growth year for the U.S.—U.S. annual average growth over a 12-year period is only 2.3% and over a 20-year period it is only 2.1%. Therefore, although in 2023 China’s economy grew more than twice as fast as the U.S., that figure is actually somewhat flattering for the U.S. Figure 2shows that in the overall period since the beginning of the pandemic China’s economy has grown by 20.1% and the U.S. by 8.1%—that is China’s total GDP growth since the beginning of the pandemic was two and half times greater than the U.S. China’s annual average growth rate was 4.7% compared to the US’s 2.0%.

    Economic performance of China and the three major global economic centres

    Turning to wider international comparisons than the U.S. such data immediately shows the extremely negative situation in most “Global North” economies and China’s great outperformance of them. To start by analysing this in the broadest terms, Figure 3 shows the developments in the world’s three largest economic centres—China, the U.S., and the Eurozone. These three together account for 57% of world GDP at current exchange rates and 46% in purchasing power parities (PPPs). No other economic centre comes close to matching their weight in the world economy.

    Regarding the relative performance of these three major economic centres, at the time of writing data has not been published for the Euro Area for the whole year of 2023 —which would be the ideal comparison. However, it has been published for the the Euro area for the four quarters of 2023 individually and trends can be calculated on that basis. These show that In the four years to the 4th quarter of 2023, covering the period since the beginning of the pandemic, China’s economy has grown by 20.1%, the U.S. by 8.2%, and the Eurozone by 3.0%. China’s economy therefore grew by two and a half times as fast as the U.S. while the situation of the Eurozone could accurately be described as extremely negative with annual average GDP growth in the last four years of only 0.7%.

    Such data again makes it immediately obvious that claims in the Western media that China faces economic crisis, and the Western economies are doing well is entirely absurd—pure fantasy propaganda disconnected from reality.

    Relative performance of China and the G7

    Turning to analysing individual countries, then comparing China to all G7 states, i.e. the major advanced economies, shows the situation equally clearly—see Figure 4. Data for China and all G7 economies has now been published for the whole of 2023. The huge outperformance by China of all the major advanced economies is again evident.

    Over the four years since the beginning of the pandemic China’s economy grew by 20.1%, the U.S. by 8.1%, Canada by 5.4%, Italy by 3.1%, the UK by 1.8%, France by 1.7%, Japan by 1.1% and Germany by 0.7%.

    In the same period China’s economy therefore grew two and a half times as fast as the U.S., almost four times as fast as Canada, almost seven times as fast as Italy, 11 times as fast as the UK, 12 times as fast as France, 18 times as fast as Japan and almost 29 times as fast as Germany.

    In terms of annual average GDP growth during this period China’s was 4.7%, the U.S. 2.0%, Canada 1.3%, Italy 0.8%, the UK 0.4%, France 0.4%, Japan 0.3% and Germany 0.2%.

    It may therefore be seen that China’s economy far outperformed the U.S., while the performance of all other major G7 economies may be quite reasonably described as extremely negative—all having annual average economic growth rates of around or even under 1%.

    Comparison of China to developing economies

    A comparison using the IMF’s January 2024 projections can also be made to the major developing economies—the BRICS. Figure 5 shows this, using the factual result for China and the IMF projections for the other countries. Over the period since the start of the pandemic, from 2019-2023, China’s GDP grew by 20.1%, India by 17.5%, Brazil by 7.7%, Russia by 3.7% and South Africa by 0.9%.

    This data confirms that the major Global South economies are growing faster than most of the major Global North economies, which is part of the rise of the Global South and draws attention to the good performance of India. But China grew more than two and half times more than all the BRICS economies except India—China’s growth was 15% greater than India’s. It should be noted that India is at a far lower stage of development than the other BRICS economies—all the others fall in the World Bank classification of upper middle-income economies whereas India falls into the lower middle income group.

    Comparison of China’s growth to Western economies

    Finally, this outperformance by China casts light on what is necessary to achieve its own 2035 strategic targets. China’s 4.6% growth rate necessary to meet these goals means that it must continue to maintain a growth rate far higher than Western economies—Figure 6 shows this in overall terms in addition to individual comparisons given to major economies above. Whereas China must achieve an annual average 4.6% growth rate the median growth rate of high income “Western” economies is only 1.9%, the U.S. is 2.3%, and the median for developing economies is 3.0%.That is, to achieve its 2035 goals China must grow twice as fast as the long term trend of the U.S., almost two and a half times as fast as the median for high income economies, and more than 50% faster than the median for developing economies. As already seen, China is more than achieving this.

    But such facts immediately show why it is an extremely misleading when proposals are made that China should move towards the macro-economic structure of a Western economy. If China adopts the structure of a Western economy then, of course, China will slow down to the same growth rate as Western economies—and therefore fail to achieve its 2035 economic goals. China will be precisely stuck in the negative outcome of the situation accurately diagnosed by Martin Wolf.

    What is the economic future of China? Will it become a high-income economy and so, inevitably, the largest in the world for an extended period, or will it be stuck in the ‘middle income’ trap, with growth comparable to that of the U.S.?

    Conclusion

    In conclusion, it addition to objectively analysing 2023’s economic results, it is also necessary in the light of this factual situation to make a remark regarding Western, in particular U.S. “journalism”.

    None of the data given above is secret, all is available from public readily accessible sources. In many cases it does not even require any calculations and simply published data can be used. But the U.S. media and journalists report information that is systematically misleading and in many cases simply untrue. While it lagged China in creating economic growth the U.S. was certainly the world leader in creating “fake economic news”! What was the reason, what attitude should be taken to it?

    First, to avoid accusations of distortion, it should be stated that there were a small handful of Western journalists who refused to go along with this type of distortion and fake news. For example Chris Giles, the Financial Times economics commentator, in December, sharply attacked “an absurd way to compare economies… among people who should know better.” Giles did not do this because of support for China but because, quite rightly, he warned that spreading false or distorted information led to serious errors by countries doing so: “Coming from the UK, which lost its top economic dog status in the late 19th century but still has some delusions of grandeur, I can understand American denialism… But ultimately, bad comparisons foster bad decisions.” But the overwhelming majority of U.S. and Western journalists continued to spread fake news. Why?

    First, the fact that identical distortions and false information appeared absolutely simultaneously across a very wide range of media makes it clear that undoubtedly U.S. intelligence services were involved in creating it—i.e. part of the misrepresentation and distortions were entirely deliberate and conscious, aimed at disguising the real situation.

    Second, another part was merely sloppy journalism—that is journalists who could not be bothered to check facts.

    Third, supporting both of these factors was “white Western arrogance”—an arrogant assumption, rooted in centuries of European and European descended countries dominating the world, that the West must be right. Therefore, such arrogance made it impossible to acknowledge or report the clear facts that China’s economy is far outperforming the West.

    But whether it was conscious distortion, sloppy journalism, or conscious or unconscious arrogance, in all these cases no respect should be given to the Western “quality” media. It is not trying to find out the truth, which is the job of journalism, it is simply spreading false propaganda.

    It remains a truth that if a theory and the real world don’t coincide there are only two courses that can be taken. The first, that of a sane person, is to abandon the theory. The second, that of a dangerous one, is to abandon the real world—precisely the danger that Chris Giles pointed to. What has been appearing in the Western media about international economic comparisons regarding China is precisely abandonment of the real world in favour of systematic fake news.

     

    This article was published earlier in mronline.org and is republished under Creative Commons Attribution-Non Commercial-No Derivatives 4.0 International License

    Feature Image Credit: China will continue to lead global growth in 2024 – globaltimes.cn

  • Amid India-China friction, we need to set real LAC

    Amid India-China friction, we need to set real LAC

    We have two outstanding issues between India and China. The larger one is about the large tracts of territory in Ladakh and Arunachal Pradesh. These two territorial disputes are not going to be resolved even in the foreseeable long term. Hence, Deng Xiaoping sagaciously suggested to Rajiv Gandhi in their 1988 meeting in Beijing that it was best left to history. A hundred years ago, the situations in both countries and their frontiers were very different. What they will be after another hundred years can be anybody’s guess?
    The urgent and pressing dispute on hand is the issue of the two LACs. These LACs frequently overlap. The term Line of Actual Control, or LAC, was first used by then Chinese PM Zhou Enlai in November 1959 when he wrote to his India’s Prime Minister Jawaharlal Nehru defining it as “the so-called McMahon Line in the east and the line up to which each side exercises actual control in the west”. Nehru rejected this line even after the events of 1962. By this time, he was also saddled with a parliamentary resolution pledging to recover all territories occupied by China. Interestingly, this LAC did not change very much even after 1962.



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  • The US economic war on China

    The US economic war on China

    The anti-China policies come out of a familiar playbook of US policy-making. The aim is to prevent economic and technological competition from a major rival.

    China’s economy is slowing down. Current forecasts put China’s GDP growth in 2023 at less than 5%, below the forecasts made last year and far below the high growth rates that China enjoyed until the late 2010s. The Western press is filled with China’s supposed misdeeds: a financial crisis in the real estate market, a general overhang of debt, and other ills. Yet much of the slowdown is the result of US measures that aim to slow China’s growth. Such US policies violate World Trade Organization rules and are a danger to global prosperity. They should be stopped.
    The anti-China policies come out of a familiar playbook of US policy-making. The aim is to prevent economic and technological competition from a major rival. The first and most obvious application of this playbook was the technology blockade that the US imposed on the Soviet Union during the Cold War. The Soviet Union was America’s declared enemy and US policy aimed to block Soviet access to advanced technologies.

    At the end of the 1980s and early 1990s, the US deliberately sought to slow Japan’s economic growth. This may seem surprising, as Japan was and is a US ally. Yet Japan was becoming “too successful,” as Japanese firms outcompeted US firms in key sectors, including semiconductors, consumer electronics, and automobiles.

    The second application of the playbook is less obvious, and in fact, is generally overlooked even by knowledgeable observers. At the end of the 1980s and early 1990s, the US deliberately sought to slow Japan’s economic growth. This may seem surprising, as Japan was and is a US ally. Yet Japan was becoming “too successful,” as Japanese firms outcompeted US firms in key sectors, including semiconductors, consumer electronics, and automobiles. Japan’s success was widely hailed in bestsellers such as Japan as Number One by my late, great colleague, Harvard Professor Ezra Vogel.
    In the mid-to-late 1980s, US politicians limited US markets to Japan’s exports (via so-called “voluntary” limits agreed with Japan) and pushed Japan to overvalue its currency. The Japanese Yen appreciated from around 240 Yen per dollar in 1985 to 128 Yen per dollar in 1988 and 94 Yen to the dollar in 1995, pricing Japanese goods out of the US market. Japan went into a slump as export growth collapsed. Between 1980 and 1985, Japan’s exports rose annually by 7.9 percent; between 1985 and 1990, export growth fell to 3.5 percent annually; and between 1990 and 1995, to 3.3 percent annually. As growth slowed markedly, many Japanese companies fell into financial distress, leading to a financial bust in the early 1990s.

    In the mid-1990s, I asked one of Japan’s most powerful government officials why Japan didn’t devalue the currency to re-establish growth. His answer was that the US wouldn’t allow it.

    Now the US is taking aim at China. Starting around 2015, US policymakers came to view China as a threat rather than a trade partner. This change of view was due to China’s economic success. China’s economic rise really began to alarm US strategists when China announced in 2015 a “Made in China 2025” policy to promote China’s advancement to the cutting edge of robotics, information technology, renewable energy, and other advanced technologies. Around the same time, China announced its Belt and Road Initiative to help build modern infrastructure throughout Asia, Africa and other regions, largely using Chinese finance, companies, and technologies.

    After winning the 2016 election on an anti-China platform, Trump imposed unilateral tariffs on China that clearly violated WTO rules. To ensure that WTO would not rule against the US measures, the US disabled the WTO appellate court by blocking new appointments.

    The US dusted off the old playbook to slow China’s surging growth. President Barrack Obama first proposed to create a new trading group with Asian countries that would exclude China, but presidential candidate Donald Trump went further, promising outright protectionism against China. After winning the 2016 election on an anti-China platform, Trump imposed unilateral tariffs on China that clearly violated WTO rules. To ensure that WTO would not rule against the US measures, the US disabled the WTO appellate court by blocking new appointments. The Trump Administration also blocked products from leading Chinese technology companies such as ZTE and Huawei and urged US allies to do the same.

    When President Joe Biden came to office, many (including me) expected Biden to reverse or ease Trump’s anti-China policies. The opposite happened. Biden doubled down, not only maintaining Trump’s tariffs on China but also signing new executive orders to limit China’s access to advanced semiconductor technologies and US investments. American firms were advised informally to shift their supply chains from China to other countries, a process labelled “friend-shoring” as opposed to offshoring. In carrying out these measures, the US completely ignored WTO principles and procedures.

    The US strongly denies that it is in an economic war with China, but as the old adage goes, if it looks like a duck, swims like a duck, and quacks like a duck, it’s probably a duck. The US is using a familiar playbook, and the Washington politicians are invoking martial rhetoric, calling China an enemy that must be contained or defeated.

    The results are seen in a reversal of China’s exports to the US. In the month that Trump came into office, January 2017, China accounted for 22 per cent of US merchandise imports. By the time Biden came into office in January 2021, China’s share of US imports had dropped to 19 per cent. As of June 2023, China’s share of US imports had plummeted to 13 per cent. Between June 2022 and June 2023, US imports from China fell by a whopping 29 per cent.

    Of course, the dynamics of China’s economy are complex and hardly driven by China-US trade alone. Perhaps China’s exports to the US will partly rebound. Yet Biden seems unlikely to ease trade barriers with China in the lead-up to the 2024 election.

    Unlike Japan in the 1990s, which was dependent on the US for its security, and so followed US demands, China has more room for maneuver in the face of US protectionism. Most importantly, I believe, China can substantially increase its exports to the rest of Asia, Africa, and Latin America, through policies such as expanding the Belt and Road Initiative. My assessment is that the US attempt to contain China is not only wrongheaded in principle but destined to fail in practice. China will find partners throughout the world economy to support a continued expansion of trade and technological advances.

     

    Feature Image Credit: The limits of US-China Economic Rivalry www.setav.org

  • An Asia-Pacific NATO: fanning the flames of war

    An Asia-Pacific NATO: fanning the flames of war

     

    Former President Trump sidelined NATO to such an extent that European members were disillusioned with American leadership and NATO was in a state of fragmentation. With Biden’s presidency unleashing its Ukraine strategy and war against Russia, NATO has solidified with blind subservience to American leadership. Building on imagined threats from Russia and China, the US is now seeking to make a NATO alliance format for security across Asia as well. On the eve of the 33rd summit at Vilnius on 11-12 July 2023, Türkiye dropped its objections for Sweden to become the 33rd member of NATO, abandoning its 150-year tradition of proud neutrality and peace in favour of war-mongering. With an eye on Asia, the summit invited four Asian countries – Japan, South Korea, Australia, and New Zealand – as observers at the summit. The summit statement is, as expected, replete with anti-Russian rhetoric but more importantly extensive in its focus on the ‘China threat’ thus paving the way for NATO’s role in Asia. Jeffrey Sachs, in a speech in Australia in early July (reproduced below), has warned forcefully about the peril that NATO poses to global peace and security.                                           – TPF Editorial Team

    “My country, the U.S., is unrecognisable. I’m not sure who runs the country. I do not believe it is the president.”, says Jeffrey Sachs in a speech at a Saving Humanity and Planet Earth (SHAPE) seminar, Melbourne, Australia. “U.S. actions are putting us on a path to war with China in the same way that U.S. actions did in Ukraine.”

    “the idea of opening NATO offices in Asia is mind-boggling in its foolishness. Please tell the Japanese to stop this reckless action.”

    Jeffrey Sachs
    Speech to Shape (Saving Humanity and Planet Earth)
    July 5, 2023

    Good afternoon to everybody. I want to thank you for inviting me and to thank SHAPE for its leadership. I just had the privilege to listen to Alison Broinowski and Chung-in Moon. We have been treated to brilliant and insightful statements. I absolutely agree with all that has been said. The world has gone mad but especially the Anglo-Saxon world, I’m afraid. I don’t know whether there is any sense in our little English-speaking corner of the world. I’m of course speaking of the United States, UK, Canada, Australia and New Zealand.

    There’s something profoundly disheartening about the politics of our countries right now. The deep madness, I’m afraid, is British Imperial thinking that has been taken over by the United States. My country, the U.S., is unrecognisable now compared even to 20 or 30 years ago. I’m not sure, to tell you the truth, who runs the country. I do not believe it is the president of the United States right now. We are run by generals, by our security establishment. The public is privy to nothing. The lies that are told about foreign policy are daily and pervasive by a mainstream media that I can barely listen to or read anymore. The New York Times, Washington Post, Wall Street Journal and the main television outlets are 100 per cent repeating government propaganda by the day, and it’s almost impossible to break through.

    it’s about a madness of the United States to keep U.S. hegemony, a militarised foreign policy dominated by the thinking of generals who are mediocre intellects, personally greedy, and without any sense because their only modus operandi is to make war.

    What is this about? Well, as you’ve heard, it’s about a madness of the United States to keep U.S. hegemony, a militarised foreign policy dominated by the thinking of generals who are mediocre intellects, personally greedy, and without any sense because their only modus operandi is to make war.

    And they are cheer-led by Britain, which is unfortunately, in my adult life, increasingly pathetic in being a cheerleader for the United States for U.S. hegemony and for war. Whatever the U.S. says, Britain will say it ten times more enthusiastically. The U.K. leadership could not love the war in Ukraine more. It is the great Second Crimean War for the British media and for the British political leadership.

    Now, how Australia and New Zealand fall for this idiocy is really a deep question for me and for you. People should know better. But I’m afraid that it is the Five Eyes and the security establishment that told the politicians, to the extent that the politicians are involved in this, ‘well this is how we have to do it’. This is our Security State and I don’t think our politicians necessarily have much role in this. By the way, the public has no role in U.S. foreign policy at all. We have no debate, no discussion, no deliberation, no debates over voting the hundred, now $113 billion, but in fact much more money spent on the Ukraine War.

    So far there’s not been an hour of organised debate even in the Congress on this, much less in the public, but my guess is that your security establishment is really the driver of this in Australia, and they explain to the Prime Minister and others: ‘you know this is the utmost National Security, and this is what America has told us. Let us, your security apparatus, explain what we’re seeing. Of course, you cannot divulge this to the broader public, but this is, at the essence, a struggle for survival in the world’.

    Everything I see myself, and I’m now 43 years in this activity as an economic advisor all over the world, suggests that this message is nonsense. One thing that would be interesting for people to look at, in order to understand these developments, is a very telling article by a former colleague of mine at Harvard, Ambassador Robert Blackwell and Ashley Tellis, written for the Council on Foreign Relations in March 2015. I want to read a couple excerpts from it because it laid out the plan of what’s happening right now pretty directly. This is how things work in the U.S., in which future plans are laid out to the establishment in such reports.

    “Since its founding, the United States has consistently pursued a grand strategy focused on acquiring and maintaining preeminent power over various rivals. First on the North American continent, then in the Western Hemisphere, and finally, globally. Preserving U.S. primacy in the global system ought to remain the central objective of U.S. grand strategy in the 21st century.”    

     – Robert Blackwill and Ashley Tellis in a March 2015 article for Council on Foreign Relations.

    We’re basically told in 2015 what’s going to happen in US-China relations. The deterioration of relations was planned — it’s not ad hoc. So, here’s what Blackwell and Tellis wrote in 2015. First, “Since its founding, the United States has consistently pursued a grand strategy focused on acquiring and maintaining preeminent power over various rivals. First on the North American continent, then in the Western Hemisphere, and finally, globally.” And then they argue that “preserving U.S. primacy in the global system ought to remain the central objective of U.S. grand strategy in the 21st century.”

    So, what’s the U.S. goal? The goal is very straightforward, it is the primacy of the United States globally. Blackwell and Tellis lay out the game plan for China. They tell us what to do.

    Here’s the list, though I’m only excerpting: “Creating new preferential trading arrangements among U.S. friends and allies to increase their mutual gains through instruments that consciously exclude China.” This is the game that Obama already started with TPP, though he couldn’t get it through domestic political opposition. Second, “create, in partnership with U.S. allies, a technology control regime vis-à-vis Beijing,” to block China’s strategic capabilities. Third, build up “power-political capacities of U.S. friends and allies on China’s periphery,” and “improving the capability of U.S. military forces to effectively project power along the Asian rimlands despite any Chinese opposition.”

    This foreshadowing of US policies by way of the Council on Foreign Relations (CFR) is well-known in recent history.

    What I find especially remarkable about this list is that it was made in 2015. It’s the step-by-step plan of action actually being carried out. This foreshadowing of US policies by way of the Council on Foreign Relations (CFR) is well-known in recent history. In 1997 in the CFR’s journal Foreign Affairs, Zbigniew Brzezinski laid out with precision the intended timeline for NATO enlargement and specifically the intention to include Ukraine in that NATO enlargement. Of course, that NATO enlargement plan has led us directly to the Ukraine War, which is indeed a proxy Russia-US war over NATO enlargement.

    Now the friends and geniuses that brought you the Ukraine War are on their way to bringing you a new war in your neighbourhood. As Professor Moon noted, the North Atlantic Treaty Organization is starting to open its offices in East Asia, which is not exactly the North Atlantic.

    So, this is where we are. It’s not absolutely simple to see through for one main reason, at least in the U.S. I’m not sure what it’s like in Australia but I expect that it’s pretty much the same as in the U.S., where we have no honesty or public deliberation about any of this. The policies are owned entirely by the security establishment, the military-industrial complex, the network of “think tanks” which are in fact non-think tanks in Washington, with almost all funded by the military-industrial complex.

    The military-industrial complex and its corporate lobby have taken over the East Coast universities where I teach. I taught at Harvard for more than 20 years, and now I teach at Columbia University. The influence of the intelligence agencies on the campuses is unprecedented, in my experience. All of this has happened without much public notice, almost a silent coup. There is no debate, no public politics, no honesty, no documents revealed. Everything is secret, confidential and a bit mysterious. Since I happen to be an economist who engages with the heads of state and ministers around the world, I hear a lot of things and see a lot of things that help me to pierce through the official “narratives” and pervasive lies.

    You will not find any of this in our public discourse. And just a word, if I may, about the Ukraine War. The war was completely predictable, and resulted from a U.S. plan for hegemony based on NATO enlargement that dates back to the early 1990’s. The U.S. strategy was to bring Ukraine into the U.S. military orbit. Brzezinski, again in 1997 in his book The Global Chess Board, laid out the strategy. Russia without Ukraine is nothing, he argued. Ukraine, he wrote, is the geographical pivot for Eurasia. Interestingly, Brzezinski warned American policymakers to ensure that they don’t push Russia and China into an alliance. In fact, that would be so antithetical to U.S. interests that Brzezinski clearly believed that it would never happen. But it has, because U.S. foreign policy is incompetent as well as profoundly dangerous and misconceived.

    During 1990-91, I happen to have been an advisor to Gorbachev, and during 1991-94, to Boris Yeltsin and Leonid Kuchma, spanning the late days of perestroika and the early days of Russian and Ukrainian independence after the dissolution of the Soviet Union. I watched very closely what was happening. I saw that the United States was absolutely uninterested in any way in helping Russia to stabilise.

    The idea of the U.S. security establishment from the early 1990s was U.S.-led unipolarity or U.S. hegemony. In the early 1990s, the U.S. rejected measures to help stabilise the Soviet economy and then the Russian economy, while it also began planning NATO enlargement, in direct contradiction to what the U.S. and Germany had promised Gorbachev and Yeltsin. So, the issue of NATO enlargement, including to Ukraine, is part of a U.S. game plan that started in the early 1990s, and eventually led to the Ukraine war.

    By the way, the U.S. was deeply involved in the overthrow of Ukraine’s pro-Russian president in 2014. Yes, this was a coup, and to an important extent, a regime change operation of the United States. I happen to have seen a part of it, and I know that U.S. money poured into supporting the Maidan. Such U.S. meddling was disgusting and destabilising, and all part of the game plan to enlarge NATO to Ukraine and Georgia.

    When one looks at the map it’s indeed Brzezinski’s 1997 idea: surround Russia in the Black Sea region. Ukraine, Romania, Bulgaria, Turkey and Georgia would all be members of NATO. That would be the end of Russian power projection in the Eastern Mediterranean and the Middle East. So it went for these “security” geniuses.

    Putin put forward diplomatic responses that were repeatedly rejected by the U.S. and its NATO allies, including the Minsk II Agreement endorsed by the U.N Security Council, but then ignored by Ukraine.

    On December 17, 2021, Putin put on the table a perfectly reasonable document as the basis for negotiation, A Draft U.S.-Russia Security Agreement. At the core was Russia’s call for an end to NATO expansion. Tragically, the U.S. blew it off. I called the White House at the end of December 2021, spoke with one of our top security officials, and pleaded, “Negotiate. Stop the NATO enlargement. You have a chance to avoid war.” Of course, to no avail. The United States’ formal response to Putin was that NATO enlargement was non-negotiable with Russia, a matter in which Russia has absolutely no say.

    This is a mind-boggling way to pursue foreign affairs because it is a direct road to war. I hope everybody understands this war in Ukraine was close to ending as early as March 2022 with a negotiated agreement just one month after Russia invaded on February 24th. The negotiated agreement was stopped by the U.S. because it was based on Ukraine’s neutrality. The U.S. told Ukraine to fight on, end negotiations, and reject neutrality.

    And so we are in a war that continues to escalate towards possible nuclear war, which is what would happen if Russia were to suffer deep defeats on the battlefield. Russia is not losing on the battlefield just now, but if it did, it would likely escalate to nuclear war. Russia is not going to be pushed out of the Donbas and Crimea and meekly go home with apologies. Russia is going to escalate if it needs to escalate. So, we are right now in a spiral that is extremely dangerous.

    Japan plays utterly into this spiral. And Australia does as well. It’s so sad to watch Australia accepting to be used in this reckless way. To pay a fortune for new military bases in a reckless, provocative, and costly way, that will feed the U.S. military-industrial complex while weighing heavily on Australia.

     

    Such U.S. actions are putting us on a path to war with China in the same way that U.S. actions did in Ukraine. Only an Asia-Pacific war would be even more disastrous. The whole idea of the U.S. and its allies fighting China is mind-boggling in its implications, its stupidity and its recklessness. All of this is utterly divorced from Australia’s real security interests. China is not a threat to Australia. It is not a threat to the world.

    I don’t know of a single Chinese overseas invasion in its history, by the way, except when the Mongols briefly ruled China and tried to invade Japan. Other than the Mongol invasion, defeated by a typhoon, China has not launched overseas wars. It’s just not part of China’s statecraft, nor would such wars be in China’s national interest.

    What worries me about the world is a deeply neurotic United States (in)security leadership that aims to be number one, but that can’t be number one in the way that it believes. This is pathetic, yet is applauded each day in London, a place that still dreams of the glory of global empire from a long bygone era.

    RCEP is the correct concept for the region to bring together China, Korea, Japan, the ten ASEAN countries, Australia and New Zealand in a coherent framework, especially around the climate challenge, energy policy, trade policy, and infrastructure and investment policy. A well-functioning RCEP would do a world of good, not only for the 15 countries in RCEP but for the entire world.

    Permit me, in conclusion, to take one minute to say what should be done.

    First, the war in Ukraine could end the day Biden steps up and says NATO will not enlarge to Ukraine. The basis for a negotiated security arrangement has been there for 30 years, but has been rejected so far by the U.S.

    Second, the idea of opening NATO offices in Asia is mind-boggling in its foolishness. Please tell the Japanese to stop this reckless action.

    Third, the U.S. approach to arming Taiwan is profoundly dangerous, provocative and deliberately so.

    Fourth, what is needed most in the Asia-Pacific is regional dialogue amongst Asia-Pacific nations.

    Fifth, the Asia-Pacific should build on RCEP [Regional Comprehensive Economic Partnership Agreement]. RCEP is the correct concept for the region to bring together China, Korea, Japan, the ten ASEAN countries, Australia and New Zealand in a coherent framework, especially around the climate challenge, energy policy, trade policy, and infrastructure and investment policy. A well-functioning RCEP would do a world of good, not only for the 15 countries in RCEP but for the entire world.

    Sorry to have run on so long but it’s so important what SHAPE is doing. You’re completely on the right track and all best wishes to your efforts.

     

    This transcript of Jeffrey Sach’s speech was published earlier in Pearls and Irritations.

    Feature Image Credit: bnn.network

    Cartoon Credit: Global Times

  • Five Centuries of Global Transformation: A Chinese Perspective

    Five Centuries of Global Transformation: A Chinese Perspective

    Humanity is in the midst of a global upheaval, on a scale unseen in 500 years: namely, the relative decline of Europe and the United States, the rise of China and the Global South, and the resulting revolutionary transformation of the international landscape. Although the era of Western global dominance is often said to have lasted five centuries, precisely speaking this is an overstatement. In reality, Europe and the United States have occupied their positions as world hegemons for closer to 200 years, after reaching their initial stages of industrialisation. The first industrial revolution was a turning point in world history, significantly impacting the relationship between the West and the rest of the world. Today, the era of Western hegemony has run its course and a new world order is emerging, with China playing a major role in this development. This article explores how we arrived at the current global conjuncture examining the different stages in the relationship between China and the West.

    Stage I: A Shifting Balance Between China and the West

    The first encounter between China and Europe dates back to the era of naval exploration of the fifteenth and sixteenth centuries, during which the Chinese navigator and diplomat Zheng He (1371–1433) embarked on his Voyages Down the Western Seas (郑和下西洋, Zhèng Hé xià xīyáng) (1405–1433), followed by the Portuguese and Spanish naval expeditions to Asia.[1] From then on, China has established direct contact with Europe through ocean passages.

    During this period China was ruled by the Ming dynasty (1388–1644), which adopted a worldview guided by the concept of tianxia (天下, tiānxià, ‘all under heaven’).[2] This belief system generally categorised humanity into two major civilisations: the Chinese who worshipped heaven, or the sky, and the West which, broadly, worshipped gods in a monotheistic sense.[3] It is important to note that, in this era, the Chinese had a broad conception of the West, considering it to encompass all the regions which expanded northwestward from Mesopotamia to the Mediterranean Sea and then to the Atlantic coast, rather than the contemporary notion which is generally limited to of the United States, Canada, Australia, New Zealand, and Europe. On the other hand, Chinese civilisation spread to the southeast, from the reaches of the Yellow River to the Yangtze River Basin onward to the coast. The two civilisations would meet at the confluence of the Indian and Pacific Oceans, from which point there has been a complete world history to speak of. At the same time, however, tianxia put forward a universalist conception of the world, in which China and the West were considered to share the same ‘world island’. Separated by the ‘Onion Mountains’ (the Pamir Mountains of Central Asia), each civilisation was thought to have its own history, though there was not yet a unified world history, and each maintained, based on their own knowledge, the tianxia order at their respective ends of the world island.

    Although the Ming dynasty discontinued its sea voyages after Zheng He’s seventh mission in 1433, some islands in the South Seas (南洋, nányáng, roughly corresponding to contemporary Southeast Asia) became incorporated into the imperial Chinese tributary system (朝贡, cháogòng). This constituted a major change in the tianxia order, compared with the prior Han (202 BCE–CE 9, 25–220 CE) and Tang (618–907 CE) dynasties in which tribute was mainly received from states of the Western Regions (西域, xīyù, roughly corresponding to contemporary Central Asia). More importantly, this southeastward expansion opened a road into the seas for China, as Chinese people of the southeast coast migrated to the South Seas, and with them goods such as silk, porcelain, and tea entered the maritime trade system. Compared with the prosperous Tang and Song (960–1279) periods, overseas trade expanded, with the Jiangnan (江南, jiāngnán, ‘south of the Yangtze River’) economy, which was largely centred on exports, being particularly dynamic; consequently, industrialisation accelerated and China, for the first time, became the ‘factory of the world’.

    European nations did not have the upper hand in their trade with China, however, they offset their deficit with the silver that they mined in the newly conquered Americas. This silver flowed into China in large quantities and became a major trading currency, leading to the globalisation of silver. Meanwhile, the introduction of corn and sweet potato seeds, native to the Americas, to China contributed to the rapid growth of the nation’s population due to the suitability of these crops to harsh conditions.

    However, China’s involvement in shaping a maritime-linked world order also brought about unexpected problems for the country; namely, an imbalance between its economy, which penetrated the maritime system, and its political and military institutions, which remained continental. This contradiction between the land and the sea produced significant tensions within China, eventually leading to the demise of the Ming dynasty. Border conflicts in the north and northeast required significant financial resources, however most of China’s wealth at that time came from maritime trade and was concentrated in the southeast. Consequently, education thrived in this coastal region, resulting in scholar-officials (士大夫, shìdàfū) from the southeast coming to dominate China’s political processes and prevent tax reforms to better distribute wealth – instead, the traditional tax system was strengthened, imposing larger burdens on the peasantry.[4] These tensions would eventually come to a head; taxation weighed particularly heavily on northern peasants who mainly lived off farming, leading to their displacement and becoming migrants who eventually overthrew the Ming regime. At the same time, military resources in the north were insufficient, leading to the growing influence of Qing rebel forces in the northeast and their opportunistic advances to the south, culminating in the establishment of the Qing dynasty’s (1636–1912) rule over the entire country.

    The Qing dynasty originated among the Manchu people of northeast China, who had agricultural and nomadic cultural roots. As Qing forces marched southwards and founded their empire, they made great efforts to establish control over the regions flanking China from the west and north, an arc extending from the Mongolian Plateau to the Tianshan Mountains and to the Qinghai-Tibet Plateau. For thousands of years, these northwest regions were a source of political instability, with successive dynasties trying and failing to unify the whole of China. By integrating these areas into the Chinese state, the Qing dynasty was thus able to achieve this historic political aim of unification. This domestic integration also had an impact on China’s international position, with Russia now becoming the country’s most important neighbour as the overland Silk Road was rerouted northwards, via the Mongolian steppe, through Russia to northern Europe.

    By the mid-to-late eighteenth century, these two ‘arcs’ of development, on the land and sea respectively, held equal weight but differing significance for China: the land provided security, while the seas were the source of vitality. However, both the land and sea developments contained contradictory dynamics: the regions of the northwestern steppe were not very stable internally while relations with neighbouring Russia and the Islamic world remained stable, on the other hand, the southeastern seas were stable internally but introduced new challenges for China in the form of relations with Europe and the United States. These land-sea dynamics have historically presented China with unique trade-offs and, to this day, they remain a fundamental strategic issue.

    In contrast, European countries benefited more from direct trade with China, and rose to a dominant position within the new global order. During the sixteenth century, under the increasingly decadent Roman Catholic Church, ethnic nationalism brewed up in Europe, culminating in Martin Luther’s Reformation in Germany. Subsequently, Europe entered an era of nation-state building known as the early modern period, characterised by the break-up of the authority of the Roman Catholic Church and the establishment of the sovereignty of secular monarchies, which overcame some of the hierarchies and divisions created by the feudal lords and made all subjects equal under the king’s law. The first country to achieve this was England, where Henry VIII banned the Church of England from paying annual tribute to the Papacy in 1533 and passed the Act of Supremacy the following year, establishing the king as the supreme head of the English Church which was made the state religion. This is why England is recognised as the first modern nation, while the constitutional changes were secondary.

    The Roman Catholic Church, facing a ruling crisis, sought to open up new pastoral avenues, and began to preach outside of Europe through the voyages of ‘discovery’. Christianity gradually became a world religion, one of the most important developments in the last five centuries, with missionaries finally making their way to China, after many twists and turns, in the late sixteenth century.

    The Christian missionaries had prepared to spread their message of truth to the Chinese, who they had expected to be ‘barbarians’. However, to their surprise, they discovered that China was a powerful civilisation with a sophisticated governance system and religious traditions. Although not believing in the personal gods of the missionaries, the Chinese people had a system of moral principles, a highly developed economy, and an established order. This inspired some missionaries to develop a serious appreciation for China, including translating Chinese classics and sending the texts back to Europe, where they would have a notable impact on the Enlightenment in Paris.[5]

    During the Enlightenment, Western philosophers developed ideas of humanism and rationalism, including notions that human beings are the subject and a ‘creator’ does not exist; humans should seek their own happiness instead of trying to ascend to the kingdom of God; humans can have sound moral beliefs and relations without relying on religion; the state can establish order without relying on religion; direct rule by the king over all subjects is the best political system, and so on. It is important to note, however, that these Enlightenment ideals, which are said to have formed the basis for Western modernity, had been common knowledge in China for thousands of years. As such, the flow of Chinese ideas and teachings to the West through Christian missionaries can be considered an important, if not the only, influence in the development of Western modernisation. Of course, Western countries have been the main drivers of global modernisation over the last two centuries, but the modernity that it advocates has long been embedded in other cultures, including China. It is necessary to recognise and affirm this fact to understand the evolution of the world today.

    In short, during the first stage of world history, which spanned more than 300 years from the early-to-mid fifteenth century to the mid-to-late eighteenth century, an integrated world system began to form, with both China and the West adjusting, changing, and benefiting in their interactions. From the Chinese perspective, this world order was largely fair.

    Stage II: Reversals of Fortunes Between China and the West

    In the mid-to-late eighteenth century, Western countries utilised their higher levels of industrialisation to secure decisive military superiority, which they abused to conquer and colonise nearly the entire Global South. This brought the world closer together than ever before, but in a union that was unjust and, therefore, unsustainable.

    Among the Western countries, England was the first to achieve an advanced stage of industrialisation, for which there was a special reason: colonisation. The British Empire appropriated massive amounts of wealth from its colonies, which also served as captive markets for British manufactures. This wealth and market demand, along with England’s relatively small population, drove scientific and technological development, and ultimately industrialisation based on the mining of fossil fuels (namely, coal), and the production of steel and machinery. During the eighteenth and nineteenth centuries, England would become the wealthiest and most powerful country in the world, with its wealth spreading to Western Europe and its colonial settlements such as the United States and Australia. The thriving European powers violently conquered and colonised the outside world through military force including most of Africa, Asia, and the Americas, eventually reaching China’s doorstep in the early-to-mid nineteenth century. In the preceding centuries of peaceful trading with China, the Western powers accumulated a large trade deficit, which they now sought to balance through the opium trade. However, due to the severe social consequences of this drug trade, China outlawed the importation of opium in 1800; in response, the Western powers launched two wars against China – the First Opium War (1839–1842) and the Second Opium War (1856–1860) – to violently open the country’s markets up. After China was defeated, various Western countries, including England, France, Germany, and the United States, forced China to sign unequal treaties granting these nations trade concessions and territories, including Hong Kong. As a result, the tianxia order began to crumble and China entered a period referred to as the ‘century of humiliation’ (百年国耻, bǎinián guóchǐ).

    China’s setback was rooted in the long-standing imbalance between its marine-oriented economy and continental military-political system. First, China’s market relied heavily on foreign trade, but the Qing government failed to develop a sovereign monetary policy, resulting in the trade flow being constantly controlled by foreign powers. Silver from abroad became China’s de facto currency and, with the government unable to exercise effective supervision, the country lost monetary sovereignty and was vulnerable to the fluctuations of silver supplies, destabilising the economy. Second, China’s natural resources were over-exploited to produce large amounts of exports; as a result, the country’s ecological environment was severely damaged. Constrained by both market and resource limitations, China’s endogenous growth hit a chokepoint, as productivity plateaued, employment declined, and surplus populations became displaced, leading to a series of major rebellions in the early-to-mid nineteenth century. It was in this context that the West showed up at China’s doorstep.

    Under the pressure of both domestic problems and external aggression, China embarked on the path of ‘learning from the outside world to defend against foreign intervention’ (师夷长技以制夷, shī yí zhǎng jì yǐ zhì yí), which has been fundamental theme of Chinese history over the past century or so. This formulation, despite having been ridiculed by many since the 1980s following the initiation of China’s economic reforms, epitomises the country’s strategy. On the one hand, China has closely studied the key drivers of Western power, namely industrial production, technological development, economic organisation, and military capability, as well as methods for social mobilisation based on the nation-state. On the other hand, China has sought to learn from other countries for the purpose of advancing its development, securing its independence, and building upon its own heritage.

    Until the mid-twentieth century, however, this path did not yield significant changes for China, fundamentally due to its inadequate state capacity, which deteriorated even further after the Qing dynasty fell in 1911. In fact, several initiatives undertaken in the late Qing period to strengthen the state, generated new problems in turn; for example, the ‘New Army’ (新军, xīnjūn) which was established in the late-nineteenth century in an effort to modernise China’s military would turn into a secessionist force. Meanwhile, theories of development advocated by scholar-officials in this period, such as the concept of ‘national salvation through industry’ (实业救国, shíyè jiùguó), were impossible to implement due to the state’s inability to provide institutional support. As such, trade remained China’s fastest growing economic sector, which, despite bringing short-term economic benefits, resulted in China becoming further subordinated to the West.

    However, by the time of the Second World War, which was preceded by China’s War of Resistance Against Japanese Aggression (1937–1945), the country’s international position began to improve, while the West experienced a relative decline. The Second World War and anti-colonial struggles for national liberation dealt a crushing blow to the old imperialist order, as the Western powers were forced to retreat, initiating a decline as they were no longer able to reap colonial dividends. Countries across Asia, Africa, and Latin America, including China, won their independence; meanwhile, the Soviet Union, stretching across Eurasia, emerged as a significant rival to the West. Amid these global convulsions, China’s weight on the international stage dramatically increased and it became an important force.

    In this global context, China began its journey toward national rejuvenation, with two main priorities. The first priority was political; emulating the Soviet Union, China’s Nationalist and the Communist parties established a strong state, which had been the cornerstone of Western economic development, while the lack of state organisation and mobilisation capacity was the greatest weakness of the Qing dynasty in the face of Western powers. The second priority was industrialisation, which advanced in a step-by-step manner in three phrases.

    The first breakthrough in industrialisation took place after the Chinese Revolution in 1949 and was made possible by the help of the Soviet Union, which exported a complete basic industrial system to China. Although this system had serious limitations, which came to a head by the 1970s and 1980s, it allowed China to develop a comprehensive understanding of the systematic nature of industry, especially the underlying structure of industrialisation, that is, heavy industry.

    The second breakthrough in industrialisation came after China established diplomatic relations with the United States in the 1970s and began to import technologies from the US and European countries. During this phase, China focused on the development of its southeast coast, a region which had a longstanding history of rural commerce and industry. With the support of machinery and knowledge gained during the first round of industrialisation, the consumer goods sector in the southeast coastal areas was able to develop rapidly at the township level, the level of government which had the most flexibility. By absorbing a large amount of workers, the labour-intensive industrial system significantly improved livelihood for the people.

    The third breakthrough in industrialisation, beginning at the turn of the century, was driven by the traditional emphasis for a strong state and a desire to continue the revolution, saw the government devote its capacity to building infrastructure and steering industrial development. As a result, China experienced continuous growth in industrial output and kept moving upwards along the industrial chain, creating the largest and most comprehensive manufacturing sector in the world. The global economic landscape thus changed dramatically.

    Today, China is in the midst of its fourth breakthrough in industrialisation, which revolves around the application of information technology to industry. In the current period, the United States is worried about being overtaken by China, which has prompted a fundamental change in bilateral relations and ushered in an era of global change.

    In short, at the heart of the second stage of world history were the shifting dynamics between China and the West. For more than 100 years since the early nineteenth century, the Western powers were on the upswing while China experienced a downturn; since the Second World War, however, the trends have reversed, with China on the rise and the West declining. Now it appears that the critical point in this relationship is approaching, where the two sides will reach equivalent positions, exhausting the limits of the old world order.

    Stage III: The Decline of the US-Led Order

    In the wake of China’s rise, the old, Western-dominated world order has been overwhelmed, however, the real trigger for its collapse is the instability resulting from the fact that the United States has been unable to secure the unipolar global dominance which it pursued after the end of the Cold War.

    Historically, the Roman empire could not reach India, let alone venture beyond the Onion Mountains; in the other direction, the Han and Tang dynasties could have hardly maintained their power even if they had managed to cross this range. The structural equilibrium for the world is for nations to stay in balance, rather than be ruled by a single centre.

    Even the immense technological advances in transportation and warfare have been unable to change this iron law. Prior to the Second World War, the Western powers had penetrated nearly all corners of the world; despite their competing interests and the force needed to maintain their colonies, this system of rule was, in a way, more stable than the current order by distributing power more broadly across the several countries. Meanwhile, in the postwar period, the Soviet Union and the West formed opposing Cold War blocs, with each camp having its own scope of influence and balanced, to an extent, by the other.

    In contrast, following the end of the Cold War, the United States became the sole superpower, dominating the entire world. The United States, as the most recently established Western country, the last ‘New World’ to be ‘discovered’ by the Europeans, and the most populous of these powers, was destined to be the final chapter in the West’s efforts to dominate the world. The United States confidently announced that their victory over the Soviet Union constituted ‘the end of history’. However, ambition cannot bypass the hard constraint of reality. Under the sole domination of the United States, the world order immediately became unstable and fragmented; the so-called Pax Americana was too short-lived to be written into the pages of history. After the brief ‘end of history’ euphoria under the Clinton and Bush administrations, the Obama era saw the United States initiate a ‘strategic contraction’, seeking to unload its burdens of global rule one after another.

    In addition to external costs, Washington’s fleeting pursuit of global hegemony also induced internal strains. Although the United States reaped many dividends from its imperial rule by developing a financial system in which capital could be globally allocated, this came with a cost; as a Chinese saying goes, ‘a blessing might be a misfortune in disguise’ (福兮祸所依, fú xī huò suǒ yī). The boom of the US financial sector, along with the volatile speculation that feeds off it, has caused the country to become deindustrialised, with the livelihoods of the working and middle classes bearing the brunt. Due to the self-protective measures of emerging countries such as China, it was impossible for this financial system to fully extract sufficient external gains to cover the domestic losses suffered by the popular classes due to deindustrialisation. Consequently, the US has developed extreme levels of income inequality, and become sharply polarised, with increasing division and antagonism between different classes and social groups.

    Deindustrialisation is at the root of the US crisis. Western superpowers were able to tyrannise the world during the nineteenth century, including their bullying of China, mainly due to their industrial superiority, which allowed them produce the most powerful ships and cannons; deindustrialisation causes the supply of those ‘ships and cannons’ to become inadequate. Even the US military-industrial system has become fragmentary and excessively costly due to the decline of supporting industries. The US elite realises the gravity of this problem, but successive administrations have struggled to address the issue; Obama called for reindustrialisation but made no progress due to the deep impasse between Republicans and Democrats, a dynamic that inhibits effective government action, which Francis Fukuyama termed the ‘vetocracy’; Trump followed this up with the timely slogan ‘Make America Great Again’, promising to make the US the world’s strongest industrial power once more; and this intention can also be seen in the incumbent Biden administration’s push for the enactment of the CHIPS and Science Act and other initiatives aimed at boosting domestic industrial development. However, as long as US finance capital can continue to take advantage of the global system to obtain high profits abroad, it cannot possibly return to domestic US industry and infrastructure. The United States would have to break the power of the financial magnates in order to revive its industry, but how could this even be possible?

    In contrast to the deindustrialisation which has taken place in the United States, China is steadily advancing through its fourth breakthrough of industrialisation and rising towards the top of global manufacturing, relying on the solid foundation of a complete industrial chain. Fearing that they will be surpassed in terms of ‘hard power’, the US elite has declared China to be a ‘competitor’ and the nature of relations between the two countries has fundamentally changed.

    The US elite have long referred to their country as the ‘City upon a Hill’, a Christian notion by which it is meant that the United States holds an exceptional status in the world and is a ‘beacon’ for other nations to follow. This deep-seated belief of superiority means that Washington cannot accept the ascendance of other nations or civilisations, such as China, which has been following its own path for thousands of years. China’s economic rise and, consequently, its growing influence in reshaping the US-led global order is nothing more than the world returning to a more balanced state; however, this is sacrilegious to Washington, comparable to the rejection of religious conversion for missionaries. It is clear that the US elite have exhausted their goodwill for China, are united in pursuing a hostile strategy against it, and will use all means to disrupt China’s development and influence on the world stage. Washington’s aggressive approach has, in turn, hardened the resolve of China to extricate itself from the confines of the US-led global system. Pax Americana will only allow China to develop in a manner which is subordinated to the rule of the United States, and so China has no choice but to take a new path and work to establish a new international order. This struggle between the United States and China is certain to dominate world headlines for the foreseeable future.

    Nevertheless, there are several factors which decrease the likelihood that the struggle will develop in a catastrophic manner. First, the two countries are geographically separated by the Pacific ocean; and, second, although the United States is a maritime nation adept at offshore balancing, it is much less capable of launching land-based incursions, particularly against a country such as China which is a composite land-sea power with enormous strategic depth. As a result, US efforts to launch a full-scale war against China would be nonviable; even if Washington instigated a naval war in the Western Pacific, the odds would not be in its favour. On top of these two considerations, the United States is, in essence, a ‘commercial republic’ (the initial definition given for the country by one of its Founding Fathers, Alexander Hamilton), meaning that its actions are fundamentally based on cost-benefit calculations; China, on the contrary, is highly experienced in dealing with aggressive external forces.[6]Altogether, these factors all but guarantee that a full-frontal war between the two countries can be entirely avoided.

    In this regard, the shifting positions of China and the United States vary greatly from similar dynamics in the past, such as the evolving hegemony on the European continent in recent centuries. In the latter context, the narrow confines of Europe cannot allow for multiple major powers, whereas the vast Pacific Ocean certainly can. This situation constitutes the bottom line of the relationship between the two countries. Therefore, while China and the United States will compete on all fronts, as long as China continues to increase its economic and military strength and clearly demonstrates its willingness to use that power, the United States will retreat in the same rational manner as its former suzerain, Britain, did. Once the United States withdraws from East Asia and the Western Pacific, a new world order will begin to take shape.

    Over the past few years, China’s efforts in this respect have paid off, causing some within the United States to recognise China’s power and determination, and adjust their strategy accordingly, pressuring allied countries to bear greater costs to uphold the Western-led order. Despite the posturing of the Western countries, there is, in fact, no such ‘alliance of democracies’; the US has always based its alliance system on common interests, of which the most important is to work together, not to advance any high-minded ideal, but to bleed other countries dry. Once these countries can no longer secure external profits together, they will have to compete with each other and their alliance system will promptly break up. In such a situation, the Western countries would return to a state similar to the period before the Second World War; fighting each other for survival rather than to carve the world into colonies. This battle of nations, although not necessarily through hot war, could cause the Western countries to backslide to their early modern state.

    The willingness of the United States to do anything in its pursuit of profit, has led to the rapid crumbling of its value system. Since former President Woodrow Wilson led the country to its position as the leader of the world system, values have been at the core of the US appeal. At that time, Wilson held sway with many Chinese intellectuals, though disillusion soon followed; meanwhile, today, the myth of the ‘American dream’ and universal values of the United States remains charismatic to a considerable proportion of Chinese elites, however, the experience of the Trump presidency has torn the mask off these purported values. The United States has openly returned to the vulgarity and brutality of colonial conquest and westward expansion.

    In addition, the current generation of Western elites suffers from a deficit in its capacity for strategic thinking. Many of the leading strategists and tacticians of the Cold War have now died, and amid hubris and dominance of the two decade ‘end of history’ era, the United States and European countries did not really produce a new generation of sharp intellectual figures. Consequently, in the face of their current dilemmas, the best that this generation of elites can offer is nothing more than repurposing old solutions and returning to the vulgarity of the colonial period.

    This kind of vulgarity may be shocking to some, however, it has deep roots in US history: from the Puritan colonists’ genocide against indigenous peoples in order to build their so-called ‘City upon a Hill’; to many of its founding fathers having been slave owners, who enshrined slavery in the Constitution; to the Federalist Papers which designed a complex system of separation of powers to guarantee freedom, but coldly discussed war and trade between countries; and to the country’s obsession with the right to bear arms, giving each person the right to kill in the name of freedom. Thus, we can see that Trump did not bring vulgarity to the United States, but only revealed the hidden tradition of the ‘commercial republic’ (it is worth noting that, in the Western tradition, merchants also tended to be plunderers and pirates).

    Today, the United States has nearly completed this transformation of its identity: from a republic of values to a republic of commerce. This version of the country does not possess the united will to resume its position as leader of the world order, as evidenced by the strong and continued influence of the ‘America First’ rhetoric. The rising support among certain sections of the US population for such political vulgarity will encourage more politicians to follow this example.

    The world order continues to be led by a number of powerful states, but is in the midst of great instability as efforts to strengthen the European Union have failed, Russia is likely to continue to decline, China is growing, Japan and South Korea lack real autonomy, and the United States, due to financial pressures, is rapidly shedding its responsibilities to support the network of post-war global multilateral institutions and alliances and instead seeks to build bilateral systems to maximise its specific interests. Put simply, the world order is falling apart; presently, the relevant questions are related to how rapid this breakdown will be, what an alternative new order should look like, and whether this new order can emerge and take effect in time to avoid widespread serious global instability.

    China’s Role in Reshaping the World Order

    A new international order has begun to emerge amid the disintegration of the old system. The main generative force in this dynamic is China, which is already the second-largest economy in the world and is a civilisation that is distinct from the West.

    China is one of the largest countries in the world and its long history has endowed it with experiences that are relevant to matters of global governance. With its immense size and diversity, China contains a world order within itself and has historically played a leading role in establishing a tianxia system that stretched over land and sea, from Central Asia to the South Seas. Alongside its rich history, China has also transformed itself into a modern country over the past century, having learned from Western experiences and its own tradition of modernity. By sharing the wisdom of its ancient history and the lessons of its modern development, China can play a constructive role in global efforts to address imbalances in the world order and build a new system in three major ways.

    1. The restoration of balanced global development. The classical order on the ‘world island’ (世界岛, shì jiè daǒ, roughly corresponding to Eurasia) leaned toward the continental nations, while the modern world order has been largely dominated by Western maritime powers. As a result, the world island became fractured, with the former centre of civilisation becoming a site of chaos and unending wars. Pax Americana was unable to establish a stable form of rule over the world island, as the United States was separated from this region by the sea and was unable to form constructive relations with non-Western countries. Therefore, the United States was only able to maintain a maritime order, rather than a world order. It relied on brutal military interventions into the centre of the world island, hastily retreating after wreaking havoc and leaving the region in a perpetual state of rupture.

    Conversely, China’s approach to the construction of a new international order is that of ‘listening to both sides and choosing the middle course’ (执两用中, zhí liǎng yòng zhōng). Historically, China successfully balanced the land and sea; during the Han and Tang dynasties, for instance, China accumulated experience in interacting with land-based civilisations, meanwhile, since the Song and Ming dynasties, China has been deeply involved in the maritime trade system. It is based on this historical experience that China has proposed the Belt and Road Initiative (BRI), of which the most important aspect is the incorporation of the world island and the oceans, accommodating both the ancient and modern orders. The BRI offers a proposal to develop an integrated and balanced world system, with the ‘Belt’ aiming to restore order on the world island, while the ‘Road’ is oriented towards the order on the seas. Alongside this initiative, China has built corresponding institutions, such as the Shanghai Cooperation Organisation (SCO).

    2. Moving beyond capitalism and promoting people-centred development. The system on which Western power and prosperity has been built is capitalism, rooted in European legacies of the merchant-marauder duality and colonial conquest, driven by the pursuit of monetary profits, managing capital with a monstrously developed financial system, and hinging on trade. Under capitalism, the Western powers have viewed countries of the Global South as ‘others’, treating them as hunting grounds for cheap resources or markets. Although the Western powers have been able to occupy and spread capitalism to much of the world, they have not been able to widely cultivate prosperity, too often tending towards malicious opportunism; for those countries that do not profit from colonialism, but suffer from its brutal oppression, the system is nonviable. As a result, since the Western powers took charge of the world in the nineteenth century, the vast majority of non-Western countries have been unable to attain industrial or modern development, a track record which disproves the purported universality of capitalism.

    The ancient Chinese sages advocated for a socioeconomic model that Dr Sun Yat-sen, a leader in the 1911 revolution to overthrow of the Qing dynasty and the first president of the Republic of China, called the ‘Principles of People’s Livelihood’ (民生主义, mínshēng zhǔyì) which can be rephrased as ‘the philosophy of benefiting the people’ (厚生主义, Hòushēng zhǔyì). This philosophy, which values the production, utilisation, and distribution of material to allow people to live better and in a sustainable manner, dates back over 2000 years, appearing as early as the Book of Documents (尚书, shàngshū), an ancient Confucian text. Guided by this philosophy, a policy of ‘promoting the fundamental and suppressing the incidental’ (崇本抑末, chóngběn yìmò) was adopted in ancient China to orient commercial and financial activities towards production and people’s livelihood. Today, China has rejuvenated this model and begun to share it with other countries through the BRI, which has taken the approach of teaching others ‘how to fish’, emphasising the improvement of infrastructure and advancement of industrialisation.

    China, which is now the world’s factory and continues to upgrade its industries, is also driving a reconfiguration of the world’s division of labour: upstream, accepting components produced by cutting-edge manufacturing in Western countries; downstream, transferring productive and manufacturing capacity to underdeveloped countries, particularly in Africa. As the world’s largest consumer market, China should access energy from different parts of the world in a fair and even manner, and promote global policies which emphasise production (‘the fundamental’) and minimise financial speculation (‘the incidental’).

    3. Towards a world of unity and diversity. When the European powers established the current world order, they generally pursued ‘homogenisation’, inclined to use violence to impose their system on other countries and inevitably creating enemies. The United States, influenced by Christian Puritanism, tends to believe in the uniformity of values, imposing its purported ‘universal values’ on the world, and denouncing any nation that differs from its conceptions as ‘evil’ and an enemy. During ‘the end of history’ period, this tendency was exemplified by the so-called War on Terror which launched invasions and missiles throughout the Middle East. Despite this preoccupation with homogenisation, the US-led order is being unravelled by rampant polarisation, broken apart by intensifying cultural and political divisions.

    China, on the other hand, tells a different story. For millennia, based on the principle of ‘multiple gods united in one heaven’ or ‘one culture and multiple deisms’, various religious and ethnic groups have been integrated within China through the worship of heaven or the culture, thus developing the nation and the tianxia system of unity and diversity. Universal order or harmony can neither be attained through violent conquest nor through the preaching and imposition of values to change ‘the other’ into ‘self’, but rather by recognising the autonomy of ‘the other’; as emphasised in The Analects of Confucius (论语·季氏, lúnyǔ·jìshì), ‘…all the influences of civil culture and virtue are to be cultivated to attract them to be so; and when they have been so attracted, they must be made contented and tranquil’ (修文德以来之,既来之,则安之, xiūwén dé yǐlái zhī, jì lái zhī, zé ānzhī). By and large, it is along this path of harmony in diversity that China today conducts international relations.

    China should understand the building of a new international order through the lens of revitalising the tianxia order, and its approach should be guided by the sages’ way of ‘harmonising all nations’ (协和万邦, xiéhé wànbāng) to pacify the tianxia. The process of constructing a new international order, or a revitalised tianxia order, should adhere to the following considerations:

    1. A tianxia order will not be built at once but progressively. A Chinese idiom can be used to describe the China-led process of forming a new global system: ‘Although Zhou was an old country, the (favouring) appointment alighted on it recently’ (周虽旧邦,其命维新, zhōu suī jiù bāng, qí mìng wéixīn). Zhou was an old kingdom that was governed by moral edification; its influence gradually expanded, first to neighbouring states and then beyond, until two-thirds of the tianxia paid allegiance to the kingdom and the existing Yin dynasty (c. 1600–1045 BCE) was replaced by the Zhou dynasty (c. 1045– 256 BCE). In approaching the construction of a new international order and revitalising the concept of tianxia, China should follow this progressive approach to avoiding a collision with the existing hegemonic system. The concept of tianxia refers to a historical process without end.

    2. Virtue and propriety are the first priority in maintaining the emerging tianxia system. A tianxia system aims to ‘harmonise all nations’, not to establish closed alliances or demand homogeneity. China should promote morality, decency, and shared economic prosperity in relations between nations and international law. What distinguishes this approach from the existing system of international law is that, in addition to clarifying the rights and obligations of each party, it also emphasises building mutual affection and rapport between nations.

    3. A tianxia order will not seek to monopolise the entire world. The world is too large to be effectively governed by any country alone. The sages understood this and so their tianxia order never attempted to expand all over the known world at the time, nor did later generations; for instance, Zheng He came across many nations during his voyages to the Western Seas, but the Ming dynasty did not colonise and conquer them, nor did he include them all in the tributary system, but instead allowed them to make their own choices. Today, China does not seek to impose any system onto other countries; with such moderation, the struggle for hegemony can be avoided.

    4. A new international order will consist of several regional systems. Instead of a world system governed by one dominant country or a small group of powers, a new global order will likely be made up of several regional systems. Across the world, countries with common geographies, cultures, belief systems, and interests have already begun to form their own regional organisations, such as in Africa, Asia, Latin America, the Middle East, and the Atlantic states; China should focus on the Western Pacific and Eurasia.

    The concept of regional systems shares some similarities with Samuel Huntington’s division of civilisations, however, importantly, it does not necessitate any clash between them. As a large country and land-sea power, China will likely overlap with multiple regional systems, including both maritime- and land-based regional systems. China, which literally means ‘the country of the middle’, should serve as a harmoniser between different regional systems and act to mitigate conflict and confrontation; in this way, a new international order of both unity and diversity can emerge.

    A new architecture of global governance will be built gradually, with layers nested upon each other from the inside out. To this end, China’s efforts should begin in the innermost layer to which it belongs, East Asia. Traditionally, China, the Korean peninsula, Vietnam, Japan, and other countries in this region formed a Confucian cultural sphere; however, after the Second World War, despite these nations successfully modernising, relations between them have deteriorated due to the pressures of foreign powers, such as the United States and Soviet Union. China’s efforts to reorganise the world order must start from here, by revitalising this shared heritage, developing coordinated regional policies based on the ‘Principles of People’s Livelihood’, and demonstrating improved standards of prosperity and civility for the world. As the achievements and strength of such regional efforts grow, the power of the United States and its world order will inevitably fade out, and the process of global transformation will rapidly accelerate.

    After the inner layer of East Asia, the next-most nested layer, or middle layer, that China should focus on is the heart of the world island, Eurasia. Central to these regional efforts is the SCO, in which China, Russia, India, and Pakistan are already member states, Iran and Afghanistan are observer states, and Turkey and Germany can be invited. Due to its economic decline and weakening global influence, Russia is likely to increase its focus on its neighbouring regions, namely Central Asia, and to participate more actively in the SCO, including assisting in efforts to promote harmonious relations and development in the region and minimising conflict. The stability of Eurasia is key, not only to the security and prosperity of China, particularly its western regions, but to overall global peace.

    Finally, the outermost layer for China is the institutionalised BRI, which connects nations and regions across the world. Proposed by President Xi Jinping in 2013, to date China has signed more than 200 BRI cooperation agreements with 149 countries and 32 international organisations.

    Concluding Remarks

    The evolution and future direction of the world order cannot be understood without examining the shifting relationship between China and the West over the past five centuries. In the early modern era, the Western powers were inspired by China in their pursuit of modernisation; in the past century, China has learned from the West. The re-emergence of China has shaken the foundations of the old Western-dominated world order and is a driving force in the formation of a new international system. Amid the momentous changes in the global landscape, it is necessary to recognise the strengths and limits of Western modernity, ideologies, and institutions, while also appreciating the Chinese tradition of modernity and its developments in the current era. For China, this requires a restructuring of its knowledge system, guided by a new vision which is inspired by classical Chinese wisdom: ‘Chinese learning as substance, Western learning for application’ (中学为体,西学为用, Zhōngxué wèi tǐ, xīxué wèi yòng).

    Bibliography

    Hamilton, Alexander, John Jay, and James Madison. The Federalist Papers [联邦党人文集]. Translated by Cheng Fengru, Han Zai, and Xun Shu. The Commercial Press, 1995.

    Yao, Zhongqiu. The Way of Yao and Shun: The Birth of Chinese Civilisation [尧舜之道:中国文明的诞生]. Hainan Publishing House, 2016.

    Zhu, Qianzhi. The Influence of Chinese Philosophy on Europe [中国哲学对欧洲的影响]. Hebei People’s Publishing House, 1999.

    Author’s Notes

    1. During the early fifteenth century, the Ming dynasty (1388–1644) sponsored a series of seven ocean voyages led by the Chinese navigator and diplomat Zheng He (1371–1433). Over a thirty-year period, these naval missions travelled from China to Southeast Asia, India, the Horn of Africa, and the Middle East.

    2. Tianxia is an ancient Chinese worldview which dates back over four thousand years and roughly translates to ‘all under heaven’, or the Earth and living beings under the sky. Incorporating moral, cultural, political, and geographical elements, tianxia has been a central concept in Chinese philosophy, civilisation, and governance. According to this belief system, achieving harmony and universal peace for tianxia, where all peoples and states share the Earth in common (天下为公 tiānxià wèi gōng), is the highest ideal.

    3. See Yao Zhongqiu, The Way of Yao and Shun: The Birth of Chinese Civilisation [尧舜之道:中国文明的诞生] (Hainan Publishing House, 2016), 64–74.

    4. Scholar-officials were intellectuals appointed to political and government posts by the emperor of China. This highly educated group formed a distinct social class which dominated government administration within imperial China.

    5. For further reading on this topic, see Zhu Qianzhi, The Influence of Chinese Philosophy on Europe [中国哲学对欧洲的影响] (Hebei People’s Publishing House, 1999).

    6. Alexander Hamilton, John Jay, and James Madison, The Federalist Papers [联邦党人文集], trans. Cheng Fengru, Han Zai, and Xun Shu (The Commercial Press, 1995).

     

    This article was published earlier in Dongsheng and is republished under the Creative Commons license CC 4.0

    Feature Image: Detail from Catalan Atlas (circa 1375) depicting Marco Polo’s caravan on the Silk Road. Abraham Cresques / Wikimedia Commons.

  • Squaring the Circle

    Squaring the Circle

    John Paul Rathbone, writing in the Financial Times, on the United Kingdom’s efforts to transform its military amid public spending constraints and growing strategic challenges, puts it extremely well when he wonders as to how its military will “square the circle of being everything, everywhere, all at once.” 

    This, however, is not just a problem that afflicts the UK or its European and NATO Allies, but the rest of the international community as well. The impact of the Russo-Ukrainian Conflict, in what increasingly appears to be an unwinnable war, is restricted not only to the geo-political or and national security spheres but also calls for a clear understanding of how future conflicts will play out and what kind of a military capability is essential if that country is to remain relevant in the changing global order.

    In our context, the challenges are far more complex and greater as we face two hostile neighbours, both nuclear armed, and unwilling to give any quarter. Indeed, it is quite ironic that while China poses the greater threat to our aspirations, ambitions and future prosperity, it is the dysfunctional and dystopian Pakistan, that threatens us with Armageddon, looking to take us down with it, as it seems intent on committing hara-kiri

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  • Towards a Conversation Across Civilisations

    Towards a Conversation Across Civilisations

    Alongside the BRICS, the construction of regional trade and development projects in Africa, Asia, and Latin America that are not controlled by the Western states or Western-dominated institutions – including the Shanghai Cooperation Organisation (2001) the Belt and Road Initiative (2013), the Community of Latin American and Caribbean States (2011), and the Regional Comprehensive Economic Partnership (2022) – heralds the emergence of a new international economic order.

     

    It has become increasingly difficult to engage in reasonable discussions about the state of the world amid rising international tensions. The present environment of global instability and conflict has emerged over the course of the past fifteen years driven by, on the one hand, the growing weakness of the principal North Atlantic states, led by the United States – which we call the West – and, on the other, the increasing assertion of large developing countries, exemplified by the BRICS (Brazil, Russia, India, China, and South Africa). This group of states, along with several others, have built the material conditions for their own development agendas, including for the next generation of technology, a sector that had previously been the monopoly of Western states and firms through the World Trade Organisation’s intellectual property rights regime. Alongside the BRICS, the construction of regional trade and development projects in Africa, Asia, and Latin America that are not controlled by the Western states or Western-dominated institutions – including the Shanghai Cooperation Organisation (2001) the Belt and Road Initiative (2013), the Community of Latin American and Caribbean States (2011), and the Regional Comprehensive Economic Partnership (2022) – heralds the emergence of a new international economic order.

    Since the world financial crisis of 2007–08, the United States and its North Atlantic allies have become acutely aware that their hegemonic status in the world has deteriorated. This decline is the consequence of three key forms of overreach: first, military overreach through both enormous military expenditure and warfare; second, financial overreach caused by the rampant waste of social wealth into the unproductive financial sector along with the widespread imposition of sanctions, dollar hegemony, and control of international financial mechanisms (such as SWIFT); and, third, economic overreach, due to the investment and tax strike of a minuscule section of the world’s population, who are solely fixated on filling their already immense private coffers. This overreach has led to the fragility of the Western states, which are less able to exercise their authority around the world. In reaction to their own weakness and the new developments in the Global South, the United States has led its allies in launching a comprehensive pressure campaign against what it considers to be its ‘near peer rivals’, namely China and Russia. This hostile foreign policy, which includes a trade war, unilateral sanctions, aggressive diplomacy, and military operations, is now commonly known as the New Cold War.

    In Western societies today, any effort to promote a balanced and reasonable conversation about China and Russia, or indeed about the leading states in the developing world, is relentlessly attacked by state, corporate, and media institutions as disinformation, propaganda, and foreign interference.

    In addition to these tangible measures, information warfare is a key element of the New Cold War. In Western societies today, any effort to promote a balanced and reasonable conversation about China and Russia, or indeed about the leading states in the developing world, is relentlessly attacked by state, corporate, and media institutions as disinformation, propaganda, and foreign interference. Even established facts, let alone alternative perspectives, are treated as matters of dispute. Consequently, it has become virtually impossible to engage in constructive discussions about the changing world order, the new trade and development regimes, or the urgent matters which require global cooperation such as climate change, poverty, and inequality, without being dismissed. In this context, dialogue between intellectuals in countries such as China with their counterparts in the West has broken down. Similarly, dialogue between intellectuals in countries of the Global South and China has also been hampered by the New Cold War, which has strained the already weak communication channels within the developing world. As a result, the conceptual landscape, terms of reference, and key debates that are taking place within China are almost entirely unknown outside of the country, which makes the holding of rational cross-country discussions very difficult.

    The New Cold War has led to an enormous spike in Sinophobia and anti-Asian racism in the Western states, frequently egged on by political leaders. The rise in Sinophobia has deepened the lack of genuine engagement by Western intellectuals with contemporary Chinese perspectives, discussions, and debates; and due to the immense power of Western information flows around the world, these dismissive attitudes have also grown in many developing countries. Although there are increasing numbers of international students in China, these students tend to study technical subjects and generally do not focus on or participate in the broader political discussions within and about China.

    This diversity of thought is not reflected in external understandings or representations of China – even in the scholarly literature – which instead largely reproduces the postures of the New Cold War.

    In the current global climate of conflict and division, it is essential to develop lines of communication and encourage exchange between China, the West, and the developing world. The range of political thinking and discourse within China is immense, stretching from a variety of Marxist approaches to the ardent advocacy of neoliberalism, from deep historical examinations of Chinese civilisation to the deep wells of patriotic thought that have grown in the recent period. Far from static, these intellectual trends have evolved over time and interact with each other. A rich variety of Marxist thinking, from Maoism to creative Marxism, has emerged in China; although these trends all focus on socialist theories, history, and experiments, each trend has developed a distinct school of thought with its own internal discourse as well as debates with other traditions. Meanwhile, the landscape of patriotic thinking is far more eclectic, with some tendencies overlapping with Marxist trends, which is understandable given the connections between Marxism and national liberation; whereas others are closer to offering culturalist explanations for China’s developmental advances. This diversity of thought is not reflected in external understandings or representations of China – even in the scholarly literature – which instead largely reproduces the postures of the New Cold War.

     

    This article was published earlier in thetricontinental.org

  • India and Myanmar: Two Years after the Coup

    India and Myanmar: Two Years after the Coup

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    Relegated to the sidelines with the ongoing Ukraine war and other crises like Taiwan, Myanmar has resurfaced in world headlines. In a recent dispatch, Associated Press (AP) reported that on 11 April 2023 ‘a fighter jet dropped bombs directly onto a crowd of people who were gathering at 8 am for the opening of a local office of the country’s opposition movement outside Pazigyi village in Sagaing region’s Kanbalu township….’ 1 . Subsequent information indicates that the number of dead including women and children is over 170. If so, this is the deadliest aerial attack carried out by the Myanmar military on its own people in the bloody aftermath of the military coup two years ago.

    With various Ethnic Armed Organisations (EAOs) and Peoples’ Defence Forces (PDFs) battling the Tatmadaw, martial law has been declared in 47 townships in Myanmar, cutting across states and regions. 2 More than 154,000 people have been displaced in the first two months of 2023, with total numbers of Internally Displaced People (IDPs) since the military takeover now at 1.3 million. Heavy fighting rages in Kachin State, the South East and North West of the country, 3 and overall 3000 civilian deaths since February 2021 are estimated 4 . Targeted assassination of military appointed government officials continues, the latest victim being the deputy director-general of the Union Election Commission who was shot dead on 22 April this year 5 . In 2022, up to 30,000 civilian infrastructures, including schools are reported to have been destroyed during military operations 6 . This situation has compelled the Tatmadaw to again postpone elections earlier scheduled for August 2023. The state of emergency has been extended.

    Important Developments Post February 2021

    The above statistics provide a telling perspective of the current violence in Myanmar. Yet there are other noteworthy developments in the country post the February 2021 coup. First of these is the increasing relevance of the opposition National Unity Government (NUG) around which civilian support appears to have coalesced.

    [powerkit_button size=”lg” style=”info” block=”true” url=”https://admin.thepeninsula.org.in/wp-content/uploads/2023/05/India-and-Myanmar-Two-years-after-the-Coup-1.pdf” target=”_blank” nofollow=”false”]
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    Featured Image Credits: CNBC Indonesia

  • India and the New Geopolitical Churnings

    India and the New Geopolitical Churnings

    In an interdependent world, India must manage both its internal pressures and external challenges with vision, a sense of balance and determination. The coming years project immense promise for India in diverse fields of human endeavour. Let’s capitalize on our innate strengths and an inclusive vision for all in our great nation and be a beacon for humanity.

    “Ukraine today may be East Asia tomorrow.”

    — Japanese PM Fumio Kishida at the 2022 Shangri La Dialogue

    Historically speaking, there usually remains an uneasy consistency in the geopolitical world order as the strategic interests of nations are not given easy alterability. Nevertheless, the traumatic geopolitical churning witnessed by the world in the last three years has no parallels since the end of World War II in 1945. Even by conservative standards, the overall impact on the world—political, economic, social and diplomatic— has been unmistakably tectonic.

    As all nations, including the major powers, endeavour to absorb the cataclysmic effects of the events of the last three years, the early months of 2023 also display a susceptibility for this adverse impact continuing in relations between nations and severe economic and health challenges remaining to the fore threatening the overall worsening of the established global order. It brooks no elaboration to state that the current and likely continuing geopolitical differences in the world community will drive geo-economic warfare and vastly augment the risk of multi-domain conflicts. By any standards, the future in geopolitical churns across the globe remains steeped in uncertainty!

    Recent Traumatic Events And Geopolitical Churnings

    The end of 2019 witnessed a global catastrophe with the outbreak of Covid19 pandemic also known as the coronavirus pandemic. Originating from the Chinese city of Wuhan, it could not be contained there and quickly spread to other Asian nations and in a few months from early 2020, virtually engulfed the entire globe. Reportedly, till date, this virus has affected 676 million cases causing over 6.88 million deaths. According to the WHO, this virus still exists in many parts of the globe in some form or the other. This Black Swan event affected the global economy, politics, health, ecology and environment besides adversely affecting many other aspects of life as never before. The globe is still reeling under the adverse impact of this virus.

    [powerkit_button size=”lg” style=”info” block=”true” url=”https://www.dsalert.org/DSA-Editions/2023/May/DSA_May-2023_Lt_Gen_Kamal_Davar_(Retd).pdf” target=”_blank” nofollow=”false”]
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  • Between Two Rocks and a Very Hard Place

    Between Two Rocks and a Very Hard Place

    Leave aside political affiliations and the flag-waving, slogan shouting, adrenaline pumped personas we adopt while watching cricket and ask ourselves a simple question. To what extent are we invested in our country, and what are we willing to sacrifice for its well-being and progress?

    Ukraine, for example, has a population of about 43 million. More than a fourth of this, mainly women, children and the aged, have been either internally or externally displaced by the ongoing war. By most estimates, over a hundred and fifty thousand are dead or wounded, which includes over 30,000 civilians, and counting. The country’s infrastructure is in ruins and despite this, their leadership, wholly supported by the people, fights on resolutely, with no quarter given or asked for. Determined to fight till they succeed in driving the Russians out of their territory, regardless of the time or toll it takes.

    In sharp contrast, we have lost over a 1000 square kilometres, of what we claim as our sovereign territory in Ladakh, without even putting up a semblance of a fight. What is even more shocking is that our government, for whatever reasons, has yet to publicly acknowledge this loss. Instead, we have had to face the ignominy of the External Affairs Minister, publicly stating that China is far too powerful for us to confront. What does that say about us?

    [powerkit_button size=”lg” style=”info” block=”true” url=”https://timesofindia.indiatimes.com/blogs/para-phrase/between-two-rocks-and-a-very-hard-place/” target=”_blank” nofollow=”false”]
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    Featured Image: Council of Foreign Relations