On the contrary, America cannot possibly compete with China on industrial and technological terms. Its best bet is to control China’s growth through global trade.
This is possible because China relies heavily on export revenues. We know this because China’s annual budget deficits have been kept below 3% for the past decade except for 2 years. This means that the vast majority of Chinese budget came from exports and credit, not fresh central bank money creation.
What this also means is that if you can block countries, say businesses from Southeast Asia or other parts of the world, from using native Chinese technology on the grounds that they are technically incompatible with Western made ones, and make it extremely costly for them to switch, then China’s exports will fall, and together with it investment in their own technology. Countries will literally have to choose between doing businesses with China at the expense of losing US and EU customers, which they have served for decades.
This is what “decoupling” means, and it is actively pursued by the US. As I said, this is the landlord strategy. Do you really think Microsoft came to prominence because it made the best products? No, it relied heavily on legal and financial means to bully their competitors out of the scene.
This is why China’s best bet is to become self-sufficient, and to do that it needs to stop being a net exporter country.
On the contrary, America cannot possibly compete with China on industrial and technological terms. Its best bet is to control China’s growth through global trade.
This is possible because China relies heavily on export revenues. We know this because China’s annual budget deficits have been kept below 3% for the past decade except for 2 years. This means that the vast majority of Chinese budget came from exports and credit, not fresh central bank money creation.
What this also means is that if you can block countries, say businesses from Southeast Asia or other parts of the world, from using native Chinese technology on the grounds that they are technically incompatible with Western made ones, and make it extremely costly for them to switch, then China’s exports will fall, and together with it investment in their own technology. Countries will literally have to choose between doing businesses with China at the expense of losing US and EU customers, which they have served for decades.
This is what “decoupling” means, and it is actively pursued by the US. As I said, this is the landlord strategy. Do you really think Microsoft came to prominence because it made the best products? No, it relied heavily on legal and financial means to bully their competitors out of the scene.
This is why China’s best bet is to become self-sufficient, and to do that it needs to stop being a net exporter country.