"President Donald Trump arrives at a moment when China, not the U.S., is the single most powerful actor in the global economy today."


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ChamoshChamoshvnd ChamoshChamoshvnd (@ChamoshChamoshvnd) Pinned comment
"How China’s Economy Is Poised to Win the Future"
Maybe not so fast!

Below is the latest commentary by Immanuel Wallerstein on China.

What about China?
www.iwallerstein.com/what-about-china/


He concludes by saying:
" The bottom line is that, though China plays a very big role in the short run, it is not as big a role as China would wish and that some in the rest of the world-system fear. It is not possible for China to stop the disintegration of the capitalist system. It can only try to secure its place in a future world-system."
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said Saïd Amin (@said) replied to ChamoshChamoshvnd (@ChamoshChamoshvnd) Pinned comment
An informative read; thks for sharing. Somewhat related, when will the US dollar be replaced as the world's reserve currency? It's inevitable. Whether it's the yuan or bitcoin (?), it's going to have massive implications for the US economy.
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ChamoshChamoshvnd ChamoshChamoshvnd (@ChamoshChamoshvnd) replied to Saïd Amin (@said) Pinned comment
Replacement of US $ will also have massive implications for China as well. See below:

AMERICA’S HEAD SERVANT?

Against predictions that China will soon replace the US as the world’s dominant economic power, Hung Ho-fung argues that the PRC’s export-oriented growth and vast dollar reserves have trapped it in a subordinate role—to which much of its elite remains committed.

newleftreview.org/II/60/ho-fung-hung-america-s-head-servant


On the history and future of US dollar this book is a must read.

"Exorbitant Privilege: The Rise and Fall of the Dollar and the Future of the International Monetary System," by Barry Eichengreen

mises.org/library/review-exorbitant-privilege-rise-and-fall-dollar-and-future-international-monetary-system


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ChamoshChamoshvnd ChamoshChamoshvnd (@ChamoshChamoshvnd) Pinned comment
Below, Sean Starrs assembles the empirical basis why the recent hype about a shift of global capitalism to BRICS, China or ‘East’ is not happening anytime soon.
He questions the dominant methodology which equates national power with national accounts. For him GDP does not equal power.
As he mentions: “...while an increasing share of global manufacturing takes place in the PRC, much of this production is controlled, directly or indirectly, by outside interests.”
He takes a look behind the scene to see who actually owns those companies responsible for the increase.
The data is compiled from the “Forbes Global 2000” annual list of the world’s top 2000 publicly traded companies, ranked by a composite of four metrics: assets, market value, profit and sales.
The survey covers 25 sectors:

Aerospace and defence
Auto, truck and parts
Banking
Business and personal services
Casinos, hotels and restaurant
Chemicals
Computer hardware and software
Conglomerates
Construction
Electronics
Financial services
Food, beverages and tobacco
Forestry, metals and mining
Healthcare equipment and services
Real estate
Retail
Telecommunications
Trading companies
Transportation
Utility

“It has become a staple of conventional wisdom that global economic power is shifting inexorably towards the East and the South. Many insist that we are on the brink of a world-historic rebalancing that will result in the end of Western domination and the rise of a new hegemony. In particular, the emergence of China on the world stage—or re-emergence, if one has a longer time-scale in mind—is seen as heralding the dawn of an ‘Asian Century’. Yet this narrative of Western decline is misleading, above all because it greatly exaggerates the fading of the US as the world’s leading capitalist power. In fact, the contemporary rise of so-called ‘emerging markets’ poses even less of a challenge to US leadership than the revival of Western Europe and Japan in the post-war decades. There is already evidence to suggest that the growth rates of these markets may have peaked around 2011, without altering their basic dependence on commodity exports to Western economies (with the partial exception of China). The road towards convergence between the West and the Rest is a great deal rockier than most commentators believe, and there is no certainty about the outcome.”

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THE CHIMERA OF GLOBAL CONVERGENCE
newleftreview.org/II/87/sean-starrs-the-chimera-of-global-convergence

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