'Capitalism and free trade are against American and
European incompetent, inefficient and ineffective democracy' is probably
only true today. In the past, before the rise of China, they were
trying to do more trade particularly looking at the huge market in
China, investing in cheaper destinations having cheaper labor, and in
the process, taking advantage of all the cheap products coming out of
China. Life was so good for the USA with Chinese products flooding their
giant superstores like Walmart and the USA able to just print and print
to get at those products. China was able to accumulate all the toilet
papers which were later to be invested in USA Treasuries, Bonds and real
estate. It was a win-win situation for both, right?
When China
started investing in those trade surpluses in the BRI and using the
accumulated US$ as loans for infrastructure developments all over the
world and competing with the IMF and World Bank, instead of pouring them
into Treasuries and other investments in the USA, the game changes. The
USA knew the writing is on the wall and relations took a turn for the
worse.
When they found out later that they could no longer
compete luring industries back to the USA, they changed their tune,
branding cheap labor as 'slave wages', voluntary outsourcing of
production to China to take advantage of the cheaper wages as stealing
its jobs, unable to compete with Chinese manufacturing as due to
'overcapacity'。
Anonymous
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