Forbes Communist China Is Now The Leader Of The ‘Free Trade’ World
Forbes:West meet East. Yes, we will save you. China’s President Xi Jinping shakes hands with World Economic Forum found Klaus Schwab in Davos last week. Communist China has ironically emerged as the best thing to happen to globalization since…well..capitalism:
As hard as this is to believe, China, governed by the Communist Party, the Western world’s former arch ideological enemy, is now the defacto leader of globalization. To say it’s the leader of the free world would take away from Angela Merkel, whom is now seen as the Princess Leia held captive by a bunch of nationalist thugs building a new new world order. But what last week’s World Economic Forum showed us all is that China is the official poster child of free trade.
Yes, the world’s largest closed economy is the bastion of how global economics work, and works well. By odd contrast, Donald Trump’s America first rhetoric goes balls-to-the-wall against Xi Jinping’s China Dream. Trump’s U.S. jobs platform takes a cue from China’s undisclosed full employment policy (China’s had 4.5% unemployment now for like five years straight.) And China’s first ever appearance in Davos stands as evidence that globalization is not dead at all, it’s just run by a communist government in Beijing.
On Monday, Donald Trump canceled Barack Obama’s Trans-Pacific Partnership Agreement. China was never a party to that deal. The idea was to corral China’s biggest Asian trading partners and force them onto the same page as U.S. labor and environmental laws. In an ideal world, this would have pressured China to follow suit if it wanted to trade with those countries. While some of this may have been wishful thinking by Washington — China is already a huge economic power in Southeast Asia — the dead deal gives China a chance to remind its southern neighbors that they are the future.
If China is their future, this has — as Trump would say — huuuuge economic and investing implications long term for China.
“There is no doubt that global economic leadership will now gravitate to the East,” said Jan Dehn, head of research for the Ashmore Group, a London-based investment firm. “In addition to exercising leadership of key economic issues, China is well underway to becoming a true economic giant.”
Based on purchasing power parity, China is expected to be the world’s largest single market economy by 2050.
The rise of China will have many profound implications on the way money flows around this planet of ours. The world’s currency and bond markets like to benchmark themselves against the largest markets and that means more money flowing into Chinese bonds. That market is not very big today, at least not for foreigners. But it will be and China will see to that. Within a decade, the Chinese government bond market could easily rival the U.S. dollar as a foreign currency reserve, and lower the weighting of the dollar in benchmark indices. That means that investment funds that are following that benchmark that says 75 of every 100 dollars needs to be in the greenback will then put 60 of every 100 dollars in the greenback once the index reflects the growing prowess of the Chinese yuan.
all of these things Forbes suggest may happen but what about Donald Trump will he Throw a spanner in the works.
China has made its fortune because Big business has been allowed to export jobs to China for cheap labor because of traitors in western governments and sell outs in the media who have gone along and been silent .
This process is now going to stop with Donald Trump
Globalism is collapsing and China which was supposed to be the leader has an uncertain future, even if the rich at Davos want it to be otherwise.