As per usual, another podcast, another story about China. This week it’s more like 10 stories about China.
If you weren’t already, maybe now is a good time to rethink of relationship with China. Honestly, we should have taken a look at this years ago. No doubt, the alarms have been blaring for years in regard to China. For a period of time, I really thought we would decouple our reliance on China at the start of COVID. We saw repeatedly that our reliance on China for material goods had major implications for our national security. Not only were daily products hard to come by but medicines that millions of people rely on were hard to come by. Even Apple, the king of logistics, was having problems. Yet, here we are, once again dealing with national security issues around the globe all because of China.
The biggest of these stories is the announcement from Xi Jinping that steers the Chinese economy away from capitalism and towards Mao’s overall socialist vision. As a result, global markets are going haywire. Even bitcoin is feeling the impacts of this. Jinping wants to curb the tech influence and give all the money back to the state. This is essentially eradicating capitalism in the country and also disincentivizing entrepreneurship. Some may not like hearing this, but money is an incentive for innovation and entrepreneurship. When you take that away, you take away the purpose and drive to move forward.
Countries like Lithuania are feeling the pressure as well. Not from the economic news, but from intense trade threats. Small countries are being bullied globally and it seems like the EU isn’t willing to back up Lithuania because it would “hurt EU-China ties.” A big kudos to Slovenian Prime Minister Janez Jansa for saying that “We must stand by every EU member state that is facing pressure.” Shockingly, China denies any wrongdoing.
Overall, it’s obvious that China is the global bully. However, as I stated earlier, money is king and China has a lot of money. As a result, countries are tied to China. Maybe, just maybe, the politicians will wake up and realize that it’s time to do something about China. I fear that day may never come.