The Rise of China as a Superpower

Shanghai, China (ISTOCK.COM/LIUFUYU)

 

 

It is one of the most impressive economic and political miracles in modern times. And it isn’t over yet.

China is a sovereign state with a population of over 1.3 billion people. The nation possesses the world’s largest economy by some measurements, the world’s largest population and the fourth-largest territory.

These are the building blocks of a superpower. While the world anticipates China gaining superpower status, analysts debate over when and whether its rise will be peaceful.

The Trumpet forecasts that China will continue to grow as a formidable power, combining its strength with Russia. Further, we forecast that it will play a major role in waging economic war that will devastate America.

Where do these forecasts come from? Continue reading

China, Russia Alliance Deepens Against American Overstretch

 

– China and Russia allied on Syria and North Korea
– Beijing & Moscow economic & monetary ties deepen
– Trump needs Russia in order to maintain balance of power in superpower triumvirate
– Sino-Russian relations currently in their “best time in history” says Chinese President ahead of G20

– China, Russia call for calm diplomacy on Syria, Korea
– China, Russia “fed up with Washington’s pursuit of hegemony”
– US is “biggest source of global strategic risks” according to China state media
– Important calm and diplomacy prevails to prevent nuclear war

Last week a UN report stated that nationalism, protectionism and attitudes of “my country first” posed threats to the United Nation’s global goals. It seems that now more than ever Trump must get relations with the super powers, onto an even keel.

Trump is aware that the US has similar issues with Russia and that it must get Putin on side to a degree or at least neutral in order to confront the more powerful China. The US needs to work with President Xi Jinping on globally important matters such as North Korea. But there are elephants in the room which also must be confronted, namely currency manipulation, trade, climate change and deepening tensions in the South China Sea.

Continue reading

Trump To Unveil “Passive-Aggressive” Currency War With China

Call it passive-aggressive currency war.

While one of Trump’s most sincere desires, both during his campaign, and ideologically from his life prior to politics, has been to publicly declare China a currency manipulator – something he promised he would do on day one of his administration – and crack down on the “undervalued” Yuan (even though over the past 18 months, China has been scrambling to prevent further devaluation of the Yuan in light of over $1 trillion in capital outflows in recent years), lately Trump appears to have gotten second thoughts, and after backing off on his intent to negotiate the “One China” policy, now Trump is looking for a way out of engaging China directly in currency war. Continue reading

China has cost US 3.4 million jobs, says think tank

A Chinese worker tests circuit boards at a factory in Sichuan province. Photo: AFP

 

Economic Policy Institute says the US-China trade relationship needs fundamental change to stop ‘unfair trade and illegal currency manipulation’

A lengthy report released last week by the Economic Policy Institute, a US think tank, lays bare the loss of American jobs to China, particularly in tech manufacturing. Continue reading

Opinion: How negative interest rates take money out of your pocket

Negative interest rates, which central banks in several countries have implemented as a way to spur economic growth, is a radical move. In the last of a three-part series, ‘Negative Thinking,’ commentator Satyajit Das examines this policy and its risks.

Low rates are supposed to encourage debt-financed consumption and investment, feeding a virtuous cycle of expansion. They also increase wealth, encouraging spending. Low rates and abundant liquidity should drive inflation.

Instead, these policies since 2008 have brought the global economy a precarious stability at best, and have not created economic growth or inflation. Continue reading

Japan’s finance minister warns China on yuan depreciation

Japanese Finance Minister Taro Aso on Friday lashed out at China by saying that if the recent yuan devaluation is the beginning of frequent currency manipulation then Tokyo is going to have to take action.

If this move was an effort by Beijing to make its currency system a market-based one, then Japan welcomed the change, Aso said. However, he warned China that Japan would be watching closely to make sure this move wasn’t just a way to give its exports a competitive advantage. Continue reading

The Lost Context of the Economic Crisis

The economic crisis worsens. The news presents us with markers, signs and symptoms. The situation spirals gradually, downward, toward a point of no return. China’s war against the U.S. dollar continues pushing one nation after another to bypass trading in dollars. We see, as well, that China Moves to Further Marginalize the Dollar just as China Leads a Campaign to Replace the Dollar as [the World’s] Reserve Currency. It is no accident that China pursues a national strategy hostile to American financial interests. To supplant a great financial power one must take certain actions and follow a definite path. So what is the American side doing to protect its position? America is doing very little. America is, in fact, lost in a wilderness of self-inspired trivialities and entertainments. We no longer appear to know which end is up. Continue reading

The Day the Dollar Dies

Twenty-one men representing China’s most powerful institutions file into a conference room atop the icc Tower looming over Victoria Harbor. The Politburo Standing Committee has mustered the ceos of China’s four largest banks, Sinopec, and several other state-owned multinationals, plus officers from the Central Military Commission and a pair of academics from China’s top technology universities.

The general secretary formally opens the meeting. “As you know, the United States of America continues to manipulate its currency,” he begins. “It is devaluing its dollar, which steals away trade and reduces the value of its debts. The Standing Committee manages the yuan’s value to protect our manufacturing base and support employment.”

The secretary leans back ever so slightly to say what everyone in the room already knows, and the reason why they are here. “Three days ago, the Federal Reserve System announced its sixth quantitative easing policy in the past seven years.”

And now, the marching orders. Continue reading