Ten years from now, if someone writes the history of China overtaking the United States of America, this week’s developments will make an important chapter. This was a week when Chinese President Xi Jinping invested an extra ¥ 4 trillion ($ 565 billion) in his economy soon after hitting the world with the lethal coronavirus pandemic. Students of the world’s economic history may be aware that the last time in 2008, China had invested exactly ¥ 4 trillion — in stocks that had sunk due to the American subprime mortgage scam. Later, China benefited manifold from the same stocks. By 2009, when Wall Street was on the verge of sinking, China was growing again at 8.7%, thanks to huge public construction projects: six-lane highways, bridges, ports, and new skyscrapers and commercial centres.
Even if the US understands China’s move, its enemies within or policymakers who are too clever by half will ensure Beijing wins this game. While Xi Jinping announced plans for nearly $ 600 billion to build airports, railways, and power grids, Senate Majority Leader McConnell stated to an economist’s utter dismay that infrastructure and the COVID pandemic were not mutually related!
What better news could Xi Jinping get than this American stupidity? With billions of dollars spent by his government on ‘Made in China 2025’, China is becoming the world’s largest force in the next five years in the areas of artificial intelligence, automation, micro-processing, renewable energy, robotics and self-driving vehicles. The American lack of vision has made China’s stratagem a sure winner. When China heads the global economy by 2025, economic historians will look back and ask why the American government was investing in coal in 2020.
It is not that China has been able to fully exploit market power. In the last seven years, the northern neighbour of India spent $ 10 trillion via shadow-banking on borrowers mindlessly. Like the Indian government recently bailing out Yes Bank, the Chinese government has extricated companies with the money of citizens. Among them features on top the Bank of Gansu listed in Hong Kong. In fact, Beijing’s economic think-tanks can be more woolly-headed than New Delhi’s. While the Indian government couldn’t care less when Cafe Cofee Day sank, the Xi government bailed out Luckin Coffee, which it fancies will someday give the American Starbucks a run for its money.
Yet today, China is in such a position that it can overtake the US economy any day. Even US President Donald Trump, who had been a businessman once upon a time not so long ago, has been unable to understand in the past three years the antidote to Chinese power. The US might have succeeded in 1985 with Trump’s trade wars and protectionist policies. Today, in the global environment of 2020, countries of the world are avoiding partnering with the US due to retributive American tariffs imposed on their exports.
Unlike the Democrats or communists, we wouldn’t cry hoarse over the growing gap between the rich and the poor, but where in the US, which once impressed upon the world the importance of competition and productivity, has the policy of capitalism disappeared? When did the US, which gave India the mantra of reform in the 1990s, reform its own systems the last time? If he must continue in power, his people will ask, apart from tax cuts, how does Trump plan to increase the income of the American population? This is paramount because, if the Democrats come back, the war against China will be lost before it can be waged.
A leading business magazine in the US suggested that the country’s crumbling infrastructure could use its own $ 600 million or $ 2 trillion on a facelift. Not only will this create jobs more quickly but it will also better prepare the US for 2025. It is otherwise accepting, Forbes says, China’s dominance in the coming years.
The most effective way to beat China is to sensitive all the stricken countries of the world to the COVID-19 pandemic caused by Beijing and mobilise them against China. On this, if Trump and other policymakers of the US keep firing salvos while Britain, France, Spain, Italy etc keep watching the show like mute spectators or suffer China’s bioterrorism in silence knowingly, it will be injustice towards humanity. Trump should bring all victims of China against the communist regime in the same manner as George W Bush had united the entire West against Iraq, never mind the weapon-of-mass-destruction hoax. This time, multiple intelligence agencies have corroborated the claim that coronavirus is nothing but a deliberate creation of Beijing.
By 2025, American investors will understand they should have brought the situation under their control, but at the moment they are not thinking like their counterparts in Japan and South Korea. Their billions of dollars are stuck in China and no American company is saying it is quitting China. Before the everyday ado from the White House, the US must ensure that the American share in China’s economic power is withdrawn and distributed among the rivals of China in the Asia-Pacific neighbourhood. When will this wisdom prevail in the American business world? Are not American businessmen patriots?