{"id":173554,"date":"2017-02-05T00:00:59","date_gmt":"2017-02-04T18:30:59","guid":{"rendered":"https:\/\/www.colombotelegraph.com\/?p=173554"},"modified":"2017-02-10T12:14:36","modified_gmt":"2017-02-10T06:44:36","slug":"xi-positions-china-for-global-economic-leadership","status":"publish","type":"post","link":"https:\/\/www.colombotelegraph.com\/index.php\/xi-positions-china-for-global-economic-leadership\/","title":{"rendered":"Xi Positions China For Global Economic Leadership"},"content":{"rendered":"<p><strong>By <a href=\"https:\/\/www.colombotelegraph.com\/?s=Kumar+David&amp;x=8&amp;y=8\">Kumar David<\/a> &#8211;<\/strong><\/p>\n<div id=\"attachment_157865\" style=\"width: 160px\" class=\"wp-caption alignright\"><a href=\"https:\/\/www.colombotelegraph.com\/wp-content\/uploads\/2016\/02\/Kumar-David-Colombo-Telegraph.jpg\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-157865\" class=\"size-thumbnail wp-image-157865\" src=\"https:\/\/www.colombotelegraph.com\/wp-content\/uploads\/2016\/02\/Kumar-David-Colombo-Telegraph-150x150.jpg\" alt=\"\" width=\"150\" height=\"150\" srcset=\"https:\/\/www.colombotelegraph.com\/wp-content\/uploads\/2016\/02\/Kumar-David-Colombo-Telegraph-150x150.jpg 150w, https:\/\/www.colombotelegraph.com\/wp-content\/uploads\/2016\/02\/Kumar-David-Colombo-Telegraph-50x50.jpg 50w\" sizes=\"auto, (max-width: 150px) 100vw, 150px\" \/><\/a><p id=\"caption-attachment-157865\" class=\"wp-caption-text\">Prof. Kumar David<\/p><\/div>\n<p>President <a href=\"https:\/\/www.colombotelegraph.com\/?s=Xi+Jinping&amp;x=11&amp;y=7\">Xi Jinping<\/a> veritably let the cat out of the bag with his speech at Davos (World Economic Forum) in January. As Trump\u2019s America abandons the international scene and retreats into fortress America, it is clear that the Chinese have decided that it is a golden opportunity to fill the vacuum and take pole position. Trump has overreached and the US is scampering to recover some mileage with post-Brexit Britain and Japan but overall it has lost the plot, at least for now.<\/p>\n<p>The highlights of Xi\u2019s presentation were:<\/p>\n<ul>\n<li>Globalisation is good; it is not the problem. (\u201cThe problems troubling the world are not caused by economic globalization\u201d).<\/li>\n<li>Globalisation promotes prosperity and makes for win-win relations between countries. (Globalization has powered growth and facilitated movement of goods, capital, and advances in science, technology and civilization\u201d).<\/li>\n<li>Economic autarchy and turning inwards is pass\u00e9. (\u201cCutting the flow of capital, technology, products, industries and people and channelling the ocean\u2019s waters into isolated lakes is not possible; it runs counter to history\u201d).<\/li>\n<li>New relationships are needed. (\u201cThe global governance system fails to embrace recent developments and falls short in representation and inclusiveness\u201d).<\/li>\n<li>The gap between rich and poor is obscene. (\u201cThere is growing inequality and widening gap between return to capital and return to labour. The richest one percent of the world owns more wealth than the 99 percent. Over 700 million people in the world are living in extreme poverty\u201d).<\/li>\n<li>Development models must be socially driven &#8211; implying it can\u2019t be untrammelled capitalism. (\u201cA sound development philosophy and model is essential for balanced development and ensure that people have equal access to opportunities and share in the benefits\u201d).<\/li>\n<li>Without saying it in so many words, Xi is saying that China is ready to step in where Trump\u2019s US is pulling out. (\u201cChina provided 400 billion Yuan of foreign assistance, undertook 5,000 foreign assistance projects, and held 11,000 training workshops for 260,000 people from developing countries. China has attracted $1.7 trillion foreign investment and made $1.2 trillion direct outbound investment, a huge contribution to global economic development\u201d).<\/li>\n<li>China is committed to action on climate change. (\u201cGlobal climate change must not be allowed to fail\u201d).<\/li>\n<li>These remarks alone give the game, if you call it that, away. China is priming itself to take global economic leadership. An ideological tilt is also evident; Xi is phrasing things in ways unthinkable for any US President to mouth. China cannot match the US in military clout or diplomatic influence \u2013 except on the Taiwan issue where China will even go to war. Economic power is where it will assert dominance over an ailing America. Add in things like the new \u2018One Belt \u2013 One Road\u2019 dream of a new land and sea Silk Road which is well underway and the new Asian Infrastructure Development Bank, and you get a picture of the game plan.<\/li>\n<\/ul>\n<p>One of our Deputy Ministers misunderstands all this and imagines that Xi is a recent convert to the classical economics of Smith and Ricardo. This is not the case, and as I argue in the accompanying piece, liberal economics is pass\u00e9 anyway. Xi\u2019s play is to make China the world\u2019s premier economic power and displace the US, not to espouse liberalism. His internationalism could just as well be out of Karl Marx (\u201cCommunists are reproached with desiring to abolish countries and nationality; workers have no country\u201d).<\/p>\n<p>The Chinese economy is state-capitalist, not market capitalist, though it uses the market for efficient resource (capital) allocation and distribution of consumption goods. Economists who imagine that a high percentage (over 50%) of the economy is in the hands of the private sector are guilty of oversimplification. A huge part of \u201cprivate enterprise\u201d is underpinned and controlled by central and provincial governments. I can quote chapter and verse but one obvious example must suffice. The booming property market, the apparently private housing and real-estate sector, is underpinned literally in state-owned land and financially in how developers are funded; a fa\u00e7ade for state supervised economic activity. The same is true of larger \u201cprivate\u201d manufacturing enterprises. The Communist State dictates terms to the whole economy.<\/p>\n","protected":false},"excerpt":{"rendered":"<p> [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":157865,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,46,8],"tags":[],"class_list":["post-173554","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-colombotelegraph","category-constitutional-reforms","category-editorial"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Xi Positions China For Global Economic Leadership - Colombo Telegraph<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.colombotelegraph.com\/index.php\/xi-positions-china-for-global-economic-leadership\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Xi Positions China For Global Economic Leadership - 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