Today, China has regained its dominant position from the 16th century, when the Chinese economy was the most sophisticated and productive in the world. China’s rapid economic growth was a result of its former leader Deng Xiaoping’s vision. Deng applied capitalist techniques to a socialist country. In addition, the Clinton administration facilitated China to become a member of the World Trade Organization (WTO) in 2001, which has enabled China to freely trade with the United States and other WTO members.
China’s economic growth has been at the expense of the United States and other western countries. The Chinese government has used many unfair trade tactics to keep its export prices low, including artificially devaluing the Chinese yuan against the US dollar, providing state subsidies to exports, and using forced labor to keep costs low. Consequently, Chinese exports are priced at a fraction of the cost of goods produced in the United States. Many US industries were forced to shut down or move operations to China.
However, in 2020 the world realized that China also controls their vital assets by acquiring or investing in their countries. In addition, China is known for intellectual property theft. As a result, the United States and the European Union began restricting Chinese investments or blocking acquisitions that may cause a threat to national security. Also, Japan and the United States provided subsidies and incentives for corporations to move back home.
Finally, we cannot discuss China without addressing its human rights violation issues, including freedom of speech, culture, and religion. China is defined as a totalitarian regime, where the state strictly controls its citizens. China Good Bad Ugly (Book) is accused of forced organ harvesting from prisoners of conscience to supply its rapidly growing organ-transplant medical tourism. In fact, China is the world leader in organ transplants.
Despite all these violations from trade and intellectual property to human rights, it is very difficult for the world to fight back. The world is too dependent on China for the majority of consumer goods, basic life-saving medicines, and other raw materials. China does not need a huge army to win the war. All it needs to do is to cut off its vital supplies to the world. This reality is truly scary!