By buying companies, exploiting natural resources, building infrastructure and giving loans all over the world, China is pursuing a soft but unstoppable form of economic domination. Beijing’s essentially unlimited financial resources allow the country to be a game-changing force in both the developed and developing world, one that threatens to obliterate the competitive edge of Western firms, kill jobs in Europe and America and blunt criticism of human rights abuses in China.
Ultimately, thanks to the deposits of over a billion Chinese savers, China Inc. has been able to acquire strategic assets worldwide. This is possible because those deposits are financially repressed — savers receive negative returns because of interest rates below the inflation rate and strict capital controls that prevent savers from investing their money in more profitable investments abroad. Consequently, the Chinese government now controls oil and gas pipelines from Turkmenistan to China and from South Sudan to the Red Sea.
Phi Beta Iota: The story is not new, but now more are being shaken from their slumber. Communism has not beat capitalism — capitalism defeated itself by losing its integrity and allowing the 1% to destroy the middle class and the blue collar leader class. Below are books reviewed at Phi Beta Iota on China, the earlier Earth Intelligence Network list of books on China, and the Amazon list of new books on China.
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