Too often, history and experience open our eyes to one set of facts and yet leave us blind to others. Our experiences and the information upon which we base our judgements color our perceptions and leads us to certain biases.
No Reason for a Cold War?
That’s a challenge for some in assessing the threat that the United States faces from China today.Loffler goes even further, claiming that “the Chinese accept fundamental aspects of our capitalist marketplace, and they have similar interests in halting climate change, fighting terrorists, and combatting pandemics.”
China Doesn’t Want to “Partner” With the US
Just because a Cold War scholar explains how the historical patterns of the Cold War between the United States and the Soviet Union are much different than current political and economic frictions saturating the U.S.-China relationship, that doesn’t prove in the least that global dominance at the expense of the United States is not China’s political and economic objective.That is, in fact, precisely the Chinese Communist Party’s (CCP’s) publicly stated goal. They’ve painted themselves into a corner by doing so, and now have to deliver on that objective.
In order to realize this, however, it will require a fundamental change in America’s position in the world, from dominant superpower to a new, lower-tier nation with diminished status. Needless to say, that assessment approximates the viewpoint of the White House, which puts it at odds with Professor Loffler and much of American academia.
China Rejects Liberal Trade Model
The simple fact that there is an intense and very damaging trade war between the United States and China precisely because China does not “accept fundamental aspects of our capitalist marketplace.”Their behavior since joining the World Trade Organization (WTO) in 2000 has been in direct opposition to the open markets and free trade policies they promised to deliver.
Remember, the fundamental aspect of capitalism is the creation of wealth derived by profit-based market activity. That means leveraging the price mechanism and free flow of information for the efficient distribution of resources, capital investment and the production of the right goods in the right amount at the right or “market” price.
China’s “State Capitalism” is Mercantilism
Rather, China prefers the market share maximization strategy of mercantilism. Specifically, for 30 years, China has leveraged wage level differentials to attract Western manufacturers, and then sold its cheaper products back to the Western economies at lower prices than domestic producers can charge and remain in business. This resulted in eventual bankruptcy for thousands of Western domestic producers and expanded market share for Chinese firms.Profits from these expanding firms are then taken by the Communist Party, and working capital for these now state-owned enterprises (SOEs) is either supplied by foreign direct investment or by the People’s Bank of China (PBOC) lending more and more money to firms that end up being owned by Party members, turning them into millionaires and billionaires.
Not an Ally Against Terrorism or Pollution or Pandemics
As for being part of the global fight against terrorism, China is a big supplier of high tech weapons to Iran, the world’s largest exporter of state-sponsored terrorism and an avowed enemy of the United States. China is also a major importer of Iranian oil.But what about climate change?
Is China the “crucial partner” that Loffler insists it is? No. Contrary to Loffler’s claim that China can’t be compared to the old Soviet Union, actually, it can. Both Russia and China had—and have—mostly command economies, which by definition rely on graft and corruption to function.
The New Cold War is Already Here
It shouldn’t be difficult to see that China is indeed waging a cold war against the United States, and has been since 2000. China is not interested in following the United States, or being subject to the rules that a global superpower imposes. The CCP’s sole objective with respect to the United States is to replace it as the sole superpower on the planet as soon as possible.It makes much more sense to assess China’s policies on their face value based on the CCP leadership’s known intentions, China’s capabilities and the will of the Party leadership to leverage both of these to achieve their anti-U.S. objectives. All of these facts point to a sustained and dangerous effort to replace the United States in its role as the global hegemon.
This is crystal clear to the White House.
Why doesn’t academia see it?