The real reason for the West is warm against China International Trade

Over the past two decades, the United States’ situation towards China has evolved from economic cooperation to explicit hostility. The American media and politicians have been involved in a hostile speech, while the US government imposed commercial restrictions and sanctions on China and follow -up military accumulation near Chinese territory. Washington wants people to think China is a threat.

China’s rise really threatens our interests, but not the way the American political elite seeks to framing.

The American relationship with China must be understood in the context of the capitalist world system. The accumulation of capital in the basic states, which is often polished as “global north”, depends on cheap labor and cheap resources from the ocean and semi -limbs, the so -called “global south”.

This arrangement is very important to ensure high profits for multinationals that dominate global supply chains. The systematic variation of prices between the nucleus and the sect also allows a large net extension of the value of the ocean through unequal exchange in international trade.

Since the 1980s, when China has opened Western investment and trade, it was an important part of this arrangement, providing a major source of work for Western companies – cheap work but also with highly high skills and productivity. For example, a lot of Apple production depends on Chinese labor. According to the research conducted by Donald Anland economists, if Apple is forced to pay Chinese and East Asian workers at the same price of the American worker, it will cost them an additional $ 572 per iPad in 2011.

But over the past two decades, wages in China have increased significantly. Around 2005, the cost of manufacturing workers per hour in China was less than it was in India, that is, less than one dollar per hour. In the years after this, labor costs in China increased by the hour to more than $ 8 per hour, while India is now about $ 2 per hour. In fact, wages in China are now higher than every other developing country in Asia. This is a great historical development.

This happened for several major reasons. On the one hand, the excess labor surplus in China has been increasingly absorbed into the wage economy, which inflated the murder of workers. At the same time, the current leadership of President Xi Jinping has sought the role of the state in the Chinese economy, which enhances public savings systems – including public health care and public housing – that has improved the position of workers.

These are positive changes for China – especially for Chinese workers – but they are a sharp problem of Western capital. The highest wages in China are restricted on the profits of Western companies that work there or depend on the Chinese manufacturing of medium parts and other major inputs.

Another problem, for the basic states, is that the increase in China’s wages and their prices reduces their exposure to unequal exchange. During the low wage era of the 1990s, the ratio of importing in China with its heart was very high. In other words, China had to export very large quantities of goods in order to obtain the necessary imports. Today, this percentage is much lower, which represents a great improvement in the conditions of trade in China, which greatly reduces Core’s ability to the appropriate value of China.

Looking at all this, capitalists in the main states are now desirable to do something to restore their access to employment and cheap resources. One of the options – which is increasingly promoted by the Western Business Press – is to transfer industrial production to other parts of Asia where wages are cheaper. But this is costly in terms of lost production, the need to find new employees, and other supply chain disorders. Another option is to force Chinese wages to decline. Consequently, the United States’s attempts to undermine the Chinese government and destabilize the Chinese economy – including through economic war and the constant threat of military escalation.

Ironically, Western governments sometimes justify their opposition to China on the basis that China’s exports are very cheap. It is often claimed that China is “cheating” in international trade, by artificially suppressing the exchange rate of its currency, Renminbi. But the problem with this argument is that China has abandoned this policy about a decade ago. “In recent years, China has made efforts to avoid a decrease in the value of Renminbe, as it sacrifices a large number of reserves. This may mean implicitly, if there is anything, then this currency is now exaggeration,” Jose Antonio Ocampo, an economist at the International Monetary Fund (IMF), said in 2017. China eventually allowed the value of the currency reduction in 2019, when the customs tariff imposed by the administration of US President Donald Trump on Renminbi increased. But this was a natural response to change in market conditions, not an attempt to suppress Renminbi less than the market price.

The United States has largely supported the Chinese government in the period in which its currency was less than its value, including through loans from the International Monetary Fund and the World Bank. The West decisively turned against China in the middle of 2010, the moment the country began to raise its prices and challenge its position as a surrounding resource for the cheap inputs of Western supply chains.

The second element that drives us hostility towards China is technology. Beijing has used industrial policy to determine the priorities of technological development in strategic sectors over the past decade, and made remarkable progress. It now has the largest high -speed rail network in the world, creates its own commercial aircraft, leads the world to renewable energy technology and electric cars, has advanced medical technology, smartphone technology, micro -chips production, artificial intelligence, etc. These are achievements that we only expect from high -income countries, and China does this with less than 80 percent of the individual’s gross domestic product from the average “advanced economy”. It is unprecedented.

This is a problem for basic cases because one of the main columns of the empire is that it needs to maintain a monopoly on the necessary technologies such as capital goods, medicines, computers, aircraft, etc. This forces the “global south” to a position on dependency, so they are forced to export large quantities of their cheap resources in order to obtain these necessary technologies. This is what maintains the pure CORE extension through unequal exchange.

Technological development in China is now destroying Western monopolies, and it may give suppliers other alternatives to developing countries to the necessary commodities at reasonable prices. This is a fundamental challenge to the imperial order and unequal exchange.

The United States has responded to imposing sanctions designed to charge technological development in China. So far, this has not succeeded; If anything, it has increased China’s incentives for developing sovereign technological capabilities. With this weapon mostly neutralizing, the United States wants to resort to warmth, and the main goal of it is to destroy the industrial base in China, transfer investment capital in China and productivity capabilities towards defense. The United States wants to go to war with China, not because China poses a kind of military threat to the American people, but because Chinese development undermines the interests of the imperial capital.

Western allegations about China, which is a kind of military threat, is pure propaganda. Physical facts tell mainly a different story. In fact, the Chinese military spending of the individual is less than the global average, and 1/10 of the United States alone. Yes, China has a large number of population, but even from an absolute terms, the military bloc spends aligning in the United States more than seven times on military power more than China. The United States controls eight nuclear weapons, each owned by China.

China may have the ability to prevent the United States from imposing its will on it, but it does not have the ability to impose its will on the rest of the world in the way the basic countries do. The narration that China is a kind of exaggerated military threat.

In fact, the opposite is true. The United States has hundreds of military bases and utilities worldwide. A large number of them are stationed near China – in Japan and South Korea. In contrast, China has only one foreign military base, in Djibouti, and zero military bases near the American border.

Moreover, China has not fired a single bullet in the international war for more than 40 years, while during this time the United States has overcome, bombed or carried out regime changes in more than ten southern global countries. If there is any country that pose a known threat to global peace and security, then this is the United States.

The real reason for Western warmth is that China achieves sovereign development and this undermines the imperial arrangement on which the accumulation of Western capital depends. The West will not leave the global economic power from its hands so easily.

The opinions expressed in this article are the authors ’king and do not necessarily reflect the position of the editorial island.