The IMF is trying to teach China how to run its economy.
The IMF, the mouthpiece of the USA and the West, is claiming that China
must do more to expand its services sector. That will provide a 18%
lift to China's economy, the IMF claims. Must China follow the script
written by the West? Not today. Such advice is not meant for the good of
China. How could such good advice come from countries out to destroy
China? Biden told everyone that he will not allow China to overtake the
USA in nominal GDP during his watch. How could he allow the IMF to give
such good advice to help China? Moreover, the AIIB is also a competitor
to the IMF and World Bank, and the BRI is not using their financial
services.
What is the motive behind the IMF's narrative? Huawei
was providing and installing 5G telecommunication services in the USA
and Europe. What Happened? In one fell swoop, citing National Security
Issues, that were never even proven, they got rid of Huawei. They are
now still struggling to dismantle Huawei's equipment, set up their own
and now having to pay patent fees to Huawei. And their 5G signals were
earlier said to be interfering with aviation near airports.
China
is still correcting the mistake of following the West in property
investments, and like Japan is caught in the property boom and bust
trap. China must not likewise fall into the services trap, which the
West can use to create havoc as and when it is needed. Trying to create
havoc in the manufacturing sector is easier to think about than to do,
and very costly to undertake, knowing China's capacity to retaliate.
They knew they already lost that grip on manufacturing and is using
ludicrous narratives to counter, instead of embarking on positive moves
and taking up the challenge to compete. Huawei gave China a very
valuable lesson. And Huawei was given a very good push to innovate. The
West can continue to throw spanners in Huawei's works, denigrate its
chip development as inferior rubbish and comfort themselves that they
are still ahead. Wasn't that the same when they sang from the same
songbook that China can never rise to challenge the USA?
China
ought still to invest in the services sector, and not turn away from it
altogether, particularly in the Global South. But China must not invest
in the services sector in countries aligned with the USA. The Global
South should be its main target and some countries are already embracing
5G from Huawei. These are countries that are not obedient dogs of the
USA.
China must continue with its manufacturing push, making the
Global South its priority and continue to churn out cheap goods for the
good of countries in the Global South. If the USA and the Europeans do
not favour cheap goods, they can buy expensive stuff from each other in a
lose-lose situation. Like the EU refusing cheap Russian energy and now
buying expensive USA oil and gas. I would call that a win-lose
situation. Good luck to them.
Maintaining its productive
overcapacity is an important strategy for China for countering
strangulation by the USA and the West, that will surface if that
overcapacity domination is diminished. That is China's long-term
strategy, just as important as maintaining China's military upgrading.
5 comments:
I M F any country that once trife with I M Finished are like borrowing from Loans Sharks and Blood Sucking PAPies oops Parasites and Scoundrels.
They are afraid that now China with her trillions are giving out cheaper loans in helping to built their infrastructures and Trades.
Going to create a Development Bank of BRICs not SinkiesLAND Development Bank.
This I M Finished be out of businesses with all their kaki WB.
Another sama sama blood sucker.
Majority of their positions or appointments held by the Whites.to skin the Coloured Peoples.
Not many are aware of how important the strategic move that China made in starting the BRI projects. That is why so much demonising moves have been raised against the BRI, by the USA and the West, with debt trap being the most prominently narrated. It carried no water and has been demolished for good. China did not put a gun to the leaders of countries wanting such infrastructure development. They came to China asking for help. No force or coercion from China is apparent. India is voluntarily not on board the BRI and tells the whole story.
China, despite the trade war with the USA, is still accumulating trade surpluses in US$, said to be even more than before the trade war started. Buying US treasuries and bonds, as China usually does, is no longer the only option and a safe investment channel, especially looking at Russia during the Ukraine War. Of course, China already saw the danger even before the Ukraine War and hence started the BRI to diversify its surplus US$. Nor is investing in USA properties and infrastructures safe anymore as it turns out recently. The USA is banning Chinese investments in real estate. Chinese investors are not greatly alarmed by such moves, having turned their attention to Africa, South America and South Asia.
The BRI afforded China the alternative to recycle the surplus US$, channeling them into infrastructure developments all across the world in the form of US$ loans for those countries to develop their economy. It is more or less another version of China lifting eight hundred million of its population out of poverty. China is now doing poverty eradication on a global scale, for the rest of the world left in poverty by the Anglo-Saxon Imperialist Whites. Which sensible leader does not relish progress like what China is showcasing today?
China's loans in US$ for those countries for infrastructures cannot be held hostage by the USA and the West, unlike investments in USA Treasuries and bonds. The USA cannot seize every country's infrastructure developed by China inside those countries. Those infrastructures do not belong to China anyway. And the biggest dilemma befalling the USA is the realisation that China is having those loans paid back in Yuan, which is making the Yuan an important currency for such countries to accumulate going forward. It is another nail in the de-dollarisation coffin.
As decoupling is a certainty, China must maintain its overcapacity so that it can keep up the supply of manufactured goods to the Global South and keep them as cheap as possible. China is embarking on a program of lifting people in poorer countries of Africa and South America out of poverty.
China can then just forget about the USA and EU market as the Global South progress and grow wealthier, a new market is emerging for China products. Let the Anglo-Saxon Whites enjoy each other's expensive products, since they like it that way.
The IMF and the World Bank are lapdogs of the USA, created to control countries with their debt traps. That is the reality.
Argentia went through a horrid time trying to service US$ debt to the IMF, that grew even bigger with each passing year, all because of Argentina's currency being devalued frequently under pressure.
Indonesia was also decimated by the IMF during the 2008 financial crisis, with the IMF demanding the closure of banks and institutions that caused much hardship when jobs were lost. As a consequence the economy stagnated for years.
The countries that took IMF loans have nothing to show. No infrastructures and no eradication of poverty. Those IMF loans are purely debt traps, nothing more nothing less.
Excellent comment. Bravo.
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