Monday, January 04, 2021

Biden will increase China's danger.

Instead of slowing down due to the coronavirus, "Exports from China increased by 21% in November and the country is the only large economy in the world on track to register growth in 2020 of about 2% and likely 8% in 2021," wrote Rahul Jacob. "In fact, China's global trade surplus for the first 11 months of 2020 was $460 billion, up by a fifth. The surplus is more than India's total annual merchandise exports." "China, over the past year, has strategically captured the entire supply chain of the US, making it vulnerable and dependent on Beijing, said Lucas Kunce, the national security director at the American Economic Liberties Project. "Last week, in another major setback for China, the US designated 58 Chinese companies out of 103 companies as foreign entities with military ties thereby restricting export, re-export and transfers with them." "The New York Stock Exchange plans to delist three state-owned Chinese telecommunications companies from US stock exchanges by Jan 11, following President Donald Trump's November executive order prohibiting US investment in companies that Washington says support the Chinese military." A change of administration to Joe Biden will not change US suspicion of China as new legislation "could remove Chinese companies from US exchanges if American regulators are not allowed to review their financial audits". The European Union (EU) has rushed to conclude an investment deal with China before Joe Biden is sworn in as president. "For the EU, this was an opportunity to display its 'strategic autonomy' in foreign relations before the US administration set in. For China, it was a way to drive a wedge between the EU and the United States." At home, "In just five years, China says it has lifted from extreme poverty over 50 million farmers left behind by breakneck economic growth in cities." Local cadres fanned out to identify impoverished households -- defined as living on less than $1.70 a day. They handed out loans, grants and even farm animals to poor villagers. Officials visited residents weekly to check on their progress." "The Biden administration is likely to retain the tariffs and technology restrictions and the forward posture in the South China Sea and then negotiate a rollback of tariffs in exchange for Chinese cooperation in a range of areas like climate change, pandemics and international trade," wrote Manoj Joshi. "As for India headwinds will only increase in the coming years." Ominously for India, Chinese President Xi Jinping has assumed total control of the military which probably portends more aggression against neighbors, including India. Biden will need to form a coalition of democracies to confront China's territorial ambitions, wrote Shreejay Sinha. But, does he have the nous?    

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