ChiComs Act Concerned About the Global Economy, but What Are Their Real Objectives?

Chinese President Xi Jinping speaks at the opening ceremony for the China International Import Expo in Shanghai, Monday, Nov. 5, 2018. Xi promised Monday to open China wider to imports at the start of a high-profile trade fair meant to rebrand the country as a global customer but offered no response to U.S. and European complaints about technology policy and curbs on foreign business. (Aly Song/Pool Photo via AP)

The Chinese Communist Party runs China with a firm grip. In particular, the CCP tightly controls information flow to the people, ensuring that state-run news agencies convey the Party line at all times. By reading English-language versions of Xinhua and the Global Times, it is possible to discern CCP objectives.

Take the world economy, for example. After loosing a coronavirus on the world that has driven the global economy into a recession, the CCP is now pushing economic stimuli to “help” restart global supply chains. Their reason is of course not at all altruistic, as the Chinese economy is driven by exports, and if foreign countries are shut down because of the virus, Chinese exports are going nowhere and Chinese positive cashflows and trade surpluses disappear like thieves in the night.

Here, we have the Global Times claiming that China is going to “inject some stimulus” into the world economy:

China is set to roll out more stimulus to drive a slowing world economy after the G20 conference, where all countries vowed to coordinate in the face of the economic fallout from the COVID-19 pandemic, Chinese economists said.

China’s upcoming efforts, which are expected to cover a wide range of measures, including cuts to reserve ratios and subsidy fee cuts for enterprises, will be more long-term oriented and moderate-paced instead of any “flood-irrigation” style the US has taken, which may have a certain effect on boosting market sentiment in the short term, but create bubble risks to the world economy, they noted.

The comments were made after the leaders of G20 members, following a “virtual summit” via video conferencing Thursday, vowed to inject more than $5 trillion into the global economy as part of a targeted fiscal policy, and to guarantee schemes to counteract the social, economic and financial impact of the pandemic.

As the Chinese have been playing the debt-trap game for decades with developing countries in Asia and Africa, pardon me if I am skeptical about any ChiCom altruism in which money is involved. Oh, and Italy got caught in the debt-trap, too. How do you suppose those 100,000+ Chinese (a low estimate) found their way to northern Italy, which is the European epicenter for the CCP virus? Yes, the Chinese “bring gifts.”

For the last twenty years or more, the ChiComs have been working to make Shanghai the financial center of the world. Why not, as they have captured the lion’s share of the world’s manufacturing and production capabilities (much of which was at the direct expense of the US, e.g., the Rust Belt in the Upper Midwest)? And they are making progress in that regard, as reported officially by the Global Times:

Chinese financial centers have shown growing competitiveness globally as five cities rank among the top 20 global financial centers.

Of the five cities, Shanghai overtook Singapore, ranking fourth in the Global Financial Centres Index (GFCI), while Guangzhou climbed four places to 19th and Hong Kong fell three places to 6th. Beijing stays at 7th and Shenzhen slipped from 9th to 11th.

Chinese financial centers’ rising statuses in the global market are supported by China’s sound and stable economy, Liu Xuezhi, a senior researcher at the Bank of Communications, told the Global Times on Friday. China’s GDP per capita stood at 70,892 yuan ($10,276) in 2019, surpassing the significant $10,000 mark.

And, of course, in pursuing that goal, it helps to let multinational investment banks continue to wet their beaks in China. This is Wall Street at work. As the globalists they are, the banks take the long view on where the profits are, and their bets are on China:

Goldman Sachs (GS.N) and Morgan Stanley (MS.N) said on Friday they had received the final regulatory approvals to take majority stakes in their China securities joint ventures, as Beijing continues to open its financial sector to foreigners.

Goldman and Morgan Stanley received the nods from the China Securities Regulatory Commission to raise their stakes in Goldman Sachs Gao Hua Securities and Morgan Stanley Huaxin Securities from 33% to 51% and 49% to 51%, respectively, the two Wall Street banks said in separate statements.

Majority ownership of the joint ventures potentially allows the U.S. banks to expand operations in China, and better integrate them with their global businesses.

Beijing promised to scrap foreign ownership caps on securities firms and mutual funds for foreign investors from April 1, in an interim Sino-U.S. trade deal signed in January.

But all is not rosy for the ChiComs, as that pesky occupant of the Oval Office continues to undermine the inevitable rise of China to world dominance (that’s what the ChiComs tell themselves). The US is implementing currency swap agreements with many nations as a probable precursor for bypassing the World Trade Organization, which has been dominated by globalists who have facilitated China’s growth over the last two generations. China Daily parrots the CCP concerns that China will be left out of the evolving agreements. Yes, Commies, at least a few Americans have awakened to the threat you pose to the world order.

Currency swaps between the United States and other economies may become a new international financial cooperation framework that excludes China and some other Asian economies, a senior researcher warned.

The US Federal Reserve established currency swap programs with nine central banks last week, whereby the Fed accepts other hegemonycurrencies in exchange for dollars, to meet the globally soaring demand for dollar and avoid liquidity crunch.

We will explore more of the ChiComs’ economic goals and supporting propaganda in future articles. Americans need to start adding the state-run Chinese media to their reading lists because they are clearly telegraphing Xi Jinping’s priorities and long-term goals and objectives. That is their only value because the rest is CCP propaganda.

The end.