FacebookTwitterRedditEmail

China Gears Up for a Time of Profound Changes

Beijing.

This is not the airline captain telling passengers to “brace, brace, brace’’ but it is the overhead light going on to tell them to buckle up as turbulence is expected.

China’s premier has warned the world is entering a period of profound political and economic upheaval as the specter of the Trump presidency loomed over the opening day of the country’s annual National People’s Congress.

This is the two sessions season in Beijing. The advisory body, the Chinese People’s  Political Consultative Conference, began its meeting on Friday and the congress started on Sunday.

Addressing deputies of the Congress, the premier told those gathered at the Great Hall of the People to prepare themselves for “more complicated and graver situations” ahead, as a result of developments “both in and outside China”.

With 3,000 delegates in the building just off Tiananmen Square, Li could not let the opportunity slip to compare China with Trump’s America First policies, warning that “both the deglobalisation trend and protectionism are growing”.

“In the face of profound changes in the international political and economic landscape, China will always stand on the side of peace and stability, will forever be committed to equity and justice, and will always work for world peace, contribute to global development, and uphold the international order,” Li said.

China may not be the most globalized economy, foreign workers a few, the banking system is archaic and the European Chamber of Commerce in Beijing said last year that it is becoming more difficult to conduct business in China. But China has benefited from globalization and will suffer if the concept runs out of steam.

Per capita income saw a 26-fold expansion since 1985, while as many as 600 million people, twice the population of the US, were lifted out of poverty.

There is a sense of real pride among the Chinese, even as they criticize their country’s shortcomings, that within two generations, it became the world’s leading trading nation and looks set to be the biggest economy. China realizes that this success story was built on many factors, not least globalization that the Trump administration wants to rein in, possibly because China has been so successful.

The challenges that Li refers too are obvious. The outlook for global growth is uncertain, with the eurozone facing critical elections in the Netherlands and France. The UK seems to be stumbling toward Brexit negotiations and interest rates in the US are almost certain to rise in the coming months. China is also trying to stop capital hemorrhaging as it seeks to rebalance its economy away from manufacturing and exports to a more innovative, service-driven model. A trade war with the US seems more likely than not. What is in dispute is just how big the weaponry employed by both sides will be. For the first time since bicycles dominated the roads of Beijing 30 years ago, it is facing the virus of protectionism and slower global growth without being properly vaccinated.

Li, and rumors are swirling in Beijing about his future ahead of a major party conference in October where he could be replaced as premier, seemed to be telling the deputies that China’s economic growth, officially predicted at 6.5 percent, is dependent on global factors.

Slower growth in China, and 6.5 percent is considered slow, will be accepted, even welcomed if the twin scourges of pollution and ever-increasing debt can be tackled.  China’s debt to GDP ratio rose to 277 percent at the end of 2016, economists said, from 254 percent the previous year, with a rise in credit used to service debt.

The challenges China faces are difficult enough to overcome in benign economic conditions but the forecast suggests a storm is gathering.

More articles by:

Tom Clifford is a freelance journalist and can be reached at: cliffordtomsan@hotmail.com.

bernie-the-sandernistas-cover-344x550
March 30, 2020
Marshall Auerback
Washington Uses the Pandemic to Create a $2 Trillion Slush Fund for Its Cronies
Ron Jacobs
Going After Maduro
Justin Podur
When Economists Try to Solve Health Crises, the Results Can Often be Disastrous
Thomas Knapp
Decarceration: COVID-19 is Opportunity Knocking
Arshad Khan - Meena Miriam Yust
Dying Planet and a Virus Unleashed
William Astore
How My Dad Predicted the Decline of America
Seth Sandronsky
Reclaiming Vacant Homes in the COVID-19 Pandemic
John G. Russell
Racial Profiling Disorder: the All-American Pandemic
Vijay Prashad, Paola Estrada, Ana Maldonado, and Zoe PC
As the World Tackles the COVID-19 Pandemic, the U.S. Raises the Pressure on Venezuela
Laura Flanders
Covid-19: Our Health Crisis is Born of Bigotry
Cesar Chelala
The New World of Coronavirus
Lawrence Wittner
The World’s Major Military and Economic Powers Find Happiness Elusive
Ted Rall
My Dead French Grandfather Helped Me with COVID-19
Rob Okun
A Citizens’ Call to Invoke the Twenty-fifth Amendment
Ashar Foley
COVID-19 Proves It: We Need Medicare-for-All
Robert Koehler
The Virus is Our Teacher
Wim Laven
Are You Prepared to Needlessly Die for Your Country?
Jill Richardson
Stay Home, Stay Angry
ADRIAN KUZMINSKI
What’s Wrong with Ranked Choice Voting
Mike Garrity
Alliance for the Wild Rockies Sues Trump’s Bureau of Reclamation for Bull Trout Fatalities in Saint Mary-Milk River Irrigation Project on the east Side of Glacier National Park
Weekend Edition
March 27, 2020
Friday - Sunday
Rob Urie
Bailouts for the Rich, the Virus for the Rest of Us
Louis Proyect
Life and Death in the Epicenter
Paul Street
“I Will Not Kill My Mother for Your Stock Portfolio”
Jeffrey St. Clair
Roaming Charges: The Scum Also Rises
Pam Martens - Russ Martens
Stimulus Bill Allows Federal Reserve to Conduct Meetings in Secret; Gives Fed $454 Billion Slush Fund for Wall Street Bailouts
Jefferson Morley
Could the Death of the National Security State be a Silver Lining of COVID-19?
Ruth Hopkins
A Message For America from Brazil’s First Indigenous Congresswoman
Kathleen Wallace
The End of the Parasite Paradigm
Anthony DiMaggio
Misinformation and the Coronavirus: On the Dangers of Depoliticization and Social Media
Andrew Levine
Neither Biden Nor Trump: Imagine Cuomo
David Rosen
God’s Vengeance: the Christian Right and the Coronavirus
Evaggelos Vallianatos
In the Grip of Disease
David Schultz
The Covid-19 Bailout: Another Failed Opportunity at Structural Change
Edward Leer
Somebody Else’s World: An Interview with Kelly Reichardt
Robert Fisk
What Trump is Doing in the Middle East While You are Distracted by COVID-19
Daniel Warner
COVID-19: Health or Wealth?
Thomas Klikauer – Norman Simms
Corona in Germany: Hording and Authoritarianism
Ramzy Baroud
BJP and Israel: Hindu Nationalism is Ravaging India’s Democracy
Richard Moser
Russia-gate: the Dead But Undead
Ron Jacobs
Politics, Pandemics and Trumpism
Chris Gilbert
Letter From Catalonia: Alarming Measures
Richard Eskow
Seven Rules for the Boeing Bailout
Jonathan Carp
Coronavirus and the Collapse of Our Imaginations
Andrew Bacevich
The Coronavirus and the Real Threats to American Safety and Freedom
Peter Cohen
COVID-19, the Exponential Function and Human the Survival
FacebookTwitterRedditEmail