Beijing has for years been chipping away at the pillars of the U.S.-led global order—subverting its foundational institutions, international norms, and liberal ideals—but Chinese President Xi Jinping had not offered a comprehensive vision of how a China-led replacement might work. That is changing.
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Anyone who would choose a Dictatorship over a Democracy deserves exactly what they get. It will be interesting to see how India contains China. That is going to be China’s biggest worry in the years to come. One big war for China and their youth will be wiped out and the collapse of their economy will only accelerate.
Andy
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I agree with that. In a case of India v China I’d put my money on India in the long run
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Good article. Archive link below. In recent months the US has made several (IMO) important counters to China. One was the CHIPS Act which (hopefully) which prevent China from being able to manufacture advanced computer chips.
This summer Indian Prime Minister Modi snubbed China by visiting Washington and coming away with security and economic agreements.
This week the US and Vietnam signed a series of economic cooperation agreements, largely designed to counter China. US tech manufacturers are making significant investments in Vietnam.
At the G20 the US and others announced new rail and shipping corridor connecting India and Europe through the Middle East. Xi Jinping skipped the G20 because of increasing tensions with India.
And I can’t find the article at the moment, but I believe the president either asked for, or already received significant new funding for the World Bank in order to counter China’s (BRICS really, but China runs it) New Development Bank.
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How China Wants to Replace the U.S. Order
To Beijing, the existing order has become inherently hostile to it and a constraint on its global ambitions. By upholding democracy as the sole legitimate form of government, the system undermines the stature of China’s authoritarian state on the world stage.
Replace democracy with Chinese Authoritarianism? I’m sure that sells in countries that are already authoritarian, the rest of the world? Not so much.
It’s interesting to point out that Chinese wealthy families almost exclusively send their children to be education in the United States and Europe.
They are not sending their children they are going themselves. China has a problem with the wealthy leaving, seems they don’t like Authoritarian style governments either.
**Data showed that a net 10,800 high-net-worth individuals migrated out of China in 2022, and another net 13,500 are expected to leave this year. **
Andy
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13500 is a smaller number.
The US was taking 10k business people per year who have a net worth in the US of $10 million. I do not know the current terms or the current quota. The people we take in this way get citizenship.
One of my cousins and his wife have US citizenship this way.
To put a point on why the number is small in our sized economies, US v China, the US has 11 million households with at least $1 million in assets.
China has laws against taking assets out of the country. I do not know the specifics of those laws.
Capital flight is common in all societies where capital ownership is not safe whether threatened by authoritarianism, by excessive taxation or by any other cause.
Capital flight is the outflow of capital from a country due to negative monetary policies, such as currency depreciation, or carry trades in which low interest rate currencies are exchanged for higher-return assets.
Capital Flight: Definition, Causes, and Examples.
The Captain
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