The globalisation of economies combined with the rapid growth of the Chinese economy is causing skepticism in both the US and the EU as its dynamics cannot be ignored or constrained by sanctions measures.
The EU considers China’s economic figures to be impressive and China as an economic size helps solve global problems, but no global problem can be solved without China’s assistance (e.g., global warming).
by Thanos S. Chonthrogiannis
©The law of intellectual property is prohibited in any way unlawful use/appropriation of this article, with heavy civil and criminal penalties for the infringer.
Photo by the website www.merics.org
The Chinese economy with its continuous growth enables it to strengthen its comparative position in relation to the US and the EU.
the same time, however, the Chinese political system has not loosened political control and its decades-long mechanisms that maintain and propagandic the power of China’s Communist Party.
In addition, China’s global economic expansion through the applied strategy of the “Silk Road/One Belt-One Road” and the satelliteization of countries through their borrowing from China, showcases a modern model of organization and development that is successful and directly competitive and different from the corresponding model of the West.
The New U.S. Tactic adapted to the “America First” Timeless Strategy
The main long-term strategic pillar of the US towards China starting towards the end of Barack Obama’s Presidency is to limit China’s economic, political, and military development at all costs.
Former US President Donald Trump campaigned on the US “America First” strategy, promoting a direct and head-on confrontation with China, ignoring the stance of other Western countries and their allies in general.
That is why he started a trade war on issues of economy, technology, defence and general influence, and because of him I believe that the US is the only superpower that did not bother him to open a second trade war with the EU. The Donald Trump administration felt strong and believed that the U.S. could take on as many countries as it wanted.
President Joe Biden and bearing in her hands the admitted failure of the previous US administration Donald Trump to curb China’s economic, political, and military growth, realized before the 2020 US election that the US was no longer able to successfully confront China on its own and now turned to the revival of the West and its alliances.
That is why the US is simultaneously sending messages of invitation and provocation to the EU, even asking for its practical support in curbing China’s continued growth.
The development of this practical or non-EU support for the US will also judge Europe’s future security as well as US-EU relations.
Photo by the website www.chinafocus.com
The Steel and Unwavering Presence of the Communist Party of China
China’s Communist regime successfully tackled the Covid-19 pandemic and in a short time demonstrated iron discipline and indigestible application of the measures to mass populations.
This praised in the eyes and conscience of most of the people of China the robust, and effective administration of the Communist Party of China. China’s economy, the diamond of the Chinese Communist Regime went unscathed from the pandemic and its response measures and was the only one that had growth relative to the US & EU economies, respectively.
In this way, the political legitimacy of the regime has increased. At the same time, China, due to the finding of a Covid-19 vaccine, can fully and effectively implement the so-called ‘pandemic diplomacy’, supporting the countries borrowed from it by administering vaccines and beyond.
The interdependence of the European and Chinese economy is increasing
For the first time in 2020, EU trade with China exceeded that between the EU and the US. This is because EU exports to China increased by 2% compared to 2019 while China’s imports to the EU increased by 5.5%.
In the same year, EU European exports to the US fell by 8.2% in 2020 and EU imports from the US fell by 13.3%.
The interdependence of the EU economy with the US economy, shows that it is high and since (Data: IMF) exports-imports of goods and services between the EU and the US reached $1.1bn, with the EU having a $184bn surplus between the trade balance and the US having a surplus of $54bn in the service balance while the US deficit with the EU in between trade balance reaches $130bn.
Hence the pressure from the US on Germany for Germany to use its trade surpluses fiscally. If China’s goal of doubling its GDP by 2035 is met, the US will be displaced from the position of the world’s largest economy.
Many analysts believe this will be achieved before 2030. It is therefore justified to reflect on the US and the EU.
