Exploring the Complexities of China's Role in Global Trade
Happy April my esteem readers! In this issue of Commitment Issue, we will cover some ongoing geopolitical and world trade tensions between the 2 biggest world power — the US and China rivalry. But first, let’s start with some banter worthy news shall we?
F&B News!
Proper is now open to public! You can book your reservation on Tock right now to secured the spot. We have been looking forward to it and were honored to be invited to the friends and family event on Monday! Great vibe, great music, and absolutely killer drinks!
Forward/Slash — a winter park based distillery is opening.
ZYMARIUM Meadery is opening up on Mills.
Now let’s dive into this messy relationship of the US and China
Exploring the Complexities of China's Role in Global Trade
In a recent conversation, the question was raised: "If China is so bad, why do we buy everything from them?" To answer this question, we must delve into the historical context of China's relationship with the West.
The Historical Context of China's Relationship with the West
First, we must understand that when we refer to China, we are talking about the People's Republic of China (PRC). The United States' foreign policy towards China after 1949 was heavily influenced by the Cold War and the fear of communism. China, along with the Soviet Union and North Korea, was seen as a threat to Western democracies.
To counter this threat, Western countries sought to integrate China into the global economy. This was done with the hope that China would eventually embrace democracy and capitalism. The World Trade Organization (WTO) played a key role in this effort.
China's Integration into the Global Economy
The idea behind integrating China into the global economy was to use it as a counterbalance against the Soviet Union, which was seen as a far greater threat to Western democracies. The goal was to use China's huge population and market as a way to help stabilize the global economy and promote globalization.
Unfortunately, the integration of China into the global economy did not go as planned. The Communist Party of China (CCP) remained firmly in control of the country's economic policy, and the government used its market-driven economy to maintain stability and control. This was achieved by suppressing any signs of populism, which the CCP viewed as a threat to the country's stability.
Despite these concerns, China has embraced Keynesian economics and neoliberalism, albeit in a context of market-driven communism. Under the leadership of Chairman Deng Xiaoping, China successfully boosted its exports and maintained a strong relationship with the United States, thanks in part to Dr. Kissinger.
Western Democracies and the Chinese Labor Market
On the other hand, Western democracies, which embrace capitalism, are by nature embracing globalization. The benefits of the Chinese labor market, such as foreign exchange and overhead cost savings, make it inevitable for Western corporations to move in and embrace the Chinese consumer and labor market.
The Chinese labor market is one of the largest in the world, with over 780 million people employed in the country's workforce. This huge pool of labor has made China an attractive destination for Western corporations looking to reduce their labor costs and boost their profits. Additionally, the Chinese market is one of the largest in the world, with over 1.4 billion people. This makes it a prime target for Western companies looking to expand their businesses.
On top of that, China has played an increasingly significant role in the global economy over the past few decades. In 2019, China was the world's largest exporter, accounting for 13.8% of the world's total exports. The country's huge manufacturing sector has made it a critical player in the global supply chain, with many Western companies relying on Chinese suppliers for their goods and services.
Concerns About China's Human Rights Record and Authoritarian Government
However, concerns remain about China's human rights record and authoritarian government. The CCP has been accused of a number of human rights abuses, including the detention of Uighur Muslims in the Xinjiang region, the suppression of political dissent, and the restriction of press freedom.
The COVID-19 Pandemic and China's Role in the Global Supply Chain
In addition, the COVID-19 pandemic has exposed some of the vulnerabilities in China's role in the global supply chain. The outbreak of the virus in Wuhan, China, led to disruptions in the country's manufacturing sector, causing shortages of critical goods such as medical supplies and electronics.
As China's economic and political power continues to grow, it is likely that the country's relationship with the West will become increasingly complex. The United States, in particular, has taken a more confrontational approach to China under the Trump administration, with tensions between the two countries rising to new heights.