[New post] China & the WTO 2001-2021: A Legacy that Threatens Us All
User ID posted: " https://www.youtube.com/watch?v=46xbkLufgOM China & the WTO: A legacy that threatens us all by Miles Harris China & the WTO 2001-2021: A legacy that threatens us all Related Articles: China's Gold Strategy to Topple the WestUS Helping C"
_____________________________________________________________ Miles Harris offers global macro insights and champions the importance of sound money in a world gone crazy. Subscribe to my channel on macro & metals: http://tiny.cc/16m5mz _____________________________________________________________ DISCLAIMER: Any advice given on my channel and videos is for information purposes only, and does not act as financial advice. Your financial decisions are your full responsibility, and if you are in any doubt, please contact a financial professional before undertaking any investment with your money or change to your financial activities.
See Full Video Transcript Below
On the 11th of December 2001 china joined the world trade organization today we consider the profound impacts that this has had upon economies throughout the world leading to such wild disconnects that we see before us today so let's dive on in now this channel provides global macro insights and champions the importance of sound money in a world gone crazy so please do consider subscribing despite much concern among the Chinese communist party that joining the WTO and abiding by international rules regarding trade would reduce the Communist Party's power China were desperate to join the club notably as a result of the great uncertainty following the massacre in Tiananmen square in 1989 together with the subsequent collapse the soviet union and perhaps most notably the need to generate additional impetus for the economy courtesy of export-orientated growth of course the Asian Financial Crisis had threatened the export-orientated nature of the growth indeed the economy had been growing rapidly under Deng Xiaoping's original reforms from the late 1970s and then began their accession to the WTO in 1985 yet the growth rate began to fall markedly to the from the mid-1990s and as the Asian financial crisis took hold in 97 people began to question the concept of Asian exceptionalism in addition china was in the midst of reforming many loss-making state-owned enterprises which was having a dramatic impact upon employment levels and so when china finally joined the WTO in 2001 the belief was that the country would begin to westernize indeed it was believed by the likes of Bill Clinton that the invisible hand of the market would rise up and replace the iron fist of the communist party as the private sector would gradually erode china's public sector the big problem that the accession caused was that the US and other nations could now no longer use accession to the WTO as a key leverage tool to influence Beijing's policy so it thereby greatly undermined the west negotiations with the country as they actually joined the WTO nevertheless it was expected that China's economy would see a dramatic increase in the intensity of domestic competition as western firms entered the marketplace the far higher productivity of western firms was anticipated to mean that China's labor costs at around 20th of those seen in the west at the time would be negated in turn this would enable the us and others to greatly improve their trade position with the Chinese of course we all know neither of these factors took hold as we can see in this chart which just highlights the deterioration of the trade account for the us but in addition the assumption regarding the greater efficiency of western firms over their Chinese counterparts never actually considered the fact that capital goods and technology are geographically mobile that being the case it was always going to be labor costs that determined where multinationals would choose to locate production when capital goods and technology were transferred to Chinese factories productivity began to rise rapidly in fact such were the gains secured by the Chinese firms that many western producers were forced to relocate or go out of business some countries did well out of this for instance Germany was able to export goods vital to the booming Chinese manufacturing sector while Australia and other commodity producers were able to escape the impacts of the 2008 downturn as Chinese demand for commodities boomed yet the likes of Mexico who had as a result of the NAFTA free trade agreement been really expecting to harmonize its living standards with those of its North American compatriots Canada and America failed to see such improvements as the manufacturing boom headed eastwards as china's development started to accelerate they began to distribute the growth more evenly spreading economic development further afield as proceeds from the export sector were channeled into domestic infrastructure that was built on a truly vast scale this was accompanied by rapid urbanization as around 20 million people migrated to the cities every year this enormous shift to the global supply chain led to disinflation in consumer goods and deteriorating trade positions in the west at the same time western central bank's inflation targeting led to collapsing real wages while greater financialization Fed increasing debt and dramatic asset bubbles of course the use of quantitative easing from 2008 onwards prompted china to really start hoarding gold as their trust in the dollar faltered and so the key points that we have seen as a consequence the last 20 years of failed western foreign policy include centralization of power among western multinational corporations many who have relied more upon china's cheap labor rather than the outright need to actually innovate they've become immensely powerful in terms of their lobbying power to the extent that they represent almost a country in their own right and this has contributed to a persistent weakening of economic societies hardest felt in the form of manufacturing hubs which are now rife with the societal costs of deindustrialization but perhaps most importantly china's accession to the WTO and its subsequent rapid development have now for many in the west legitimized the totalitarian regime as a credible model to that of traditional liberal western democracies thus when we saw the outbreak of the virus over 18 months ago we saw china's response of immediate and draconian lockdowns to be enacted subsequently this became the accepted model that almost all countries then followed in the eyes of British broadcaster Andrew Neil what we've seen since is an apparent new Chinese style World Order taking shape whether this originated strictly from china itself or all been influenced heavily by Davos is of course much debated but is ultimately digital servitude so now we hold the line as those who refuse to be governed into a new totalitarian society thanks so much for joining me do hit the like button and look forward to seeing you next time bye-bye
Disclaimer: This article is solely for informational purposes only and it should not be construed as a solicitation or offer to buy or sell on any financial securities/instruments, etc. nor anyone should take the content as an investment advise, any opinion expressed in this article are subject to change without prior notice, eurymanthus.wordpress.com and its author is under no obligation to keep current of the information herein and accepts no liabilities for any gains, losses of any kind arising from any of the material presented on any post/s and/or article/s published.
WordPress.com
No comments:
Post a Comment