Lately, this
line “百年未有之大变局 (Bǎi Nián Wèi Yǒu Zhī Dà Biàn Jú)” had often been on Chinese President Xi Jinping’s lips
when he made policy speeches or formally received foreign heads
of states or governments. He is alluding to an upheaval he sees on the horizon,
and he is urging the world to take note and prepare for it.
 |
Crisis = Danger/Opportunity |
I do not suppose
he means “one hundred years” exactly, for there is no historical evidence to
show that world shattering events have been occurring on a hundred-year cycle.
World War I ended in 1918, and World War II began in 1939 – in less than 20
years. China overthrew the Manchus in 1911, and it went through a tumultuous
time until the People’s Republic of China was proclaimed in 1949. Great
Depression devastated the Americans in the early 1930s. The first Oil Crisis occurred
in 1973. I do not see any discernable
pattern.
Back to the
subject.
I believe Xi is
convinced that this
dà biàn jú (大变局) will
happen during Trump’s presidency and the new world order that will emerge is
not going to be a bad thing – provided the world is preparing for it, like what
China has already done.
The
Grey Rhino[i]
Many scholars
think that the present stare-down between China and the US fits well with the
Thucydides’ Trap situation described by Graham Allison in his 2017 book. But
China is not a Sparta, for it has no desire to challenge the “Athens” of the
day, i.e., the US. However, if this “hundred-year” upheaval does happen, its
impact on the world is going to be more profound than any past event. And
ironically, the root of this change is China’s peaceful rise and the
determination by an incumbent global hegemon to clobber it down.
I see the grey
rhino started to grow during Barack Obama’s tenure – in November 2011 when he shifted
his foreign policy to pivot to Asia. At home, he was frustrated by the country’s
neo-Cons in several of the policies he was trying to implement at home. China
was rising and this was an easier sell. Building relationships with China’s
neighbours to counter its rise became a policy priority. Xi Jinping took office
in 2012; it was clear that he would transform China. But Obama is an
intellectual and not someone who would hit you below the belt. His approach was
measured; he did not stir up any hornets’ nest. As the Vice President, Joe
Biden was largely overshadowed, and we did not get to hear much of his stance
on China. But what a savage beast he is!
Donald Trump narrowly
won the 2017 election. Hillary Clinton was too “mainstream”; Trump’s
unconventionality represented a fresh hope, even though his character was an
issue, let alone of the fact that he was hardly “Republican” in ideology. He
visited China in November 2017 and what he saw in China must have shocked him
to the core. Guided by his businessman instinct, he wanted China to pay for its
success and lost no time – in January 2018 – to fire his first tariff salvo.
Many more followed. Rounds of negotiations took place and both sides did reach some
compromises – until COVID-19 struck. Trump’s inept handling of the pandemic
cost him the presidency. He blamed China! (By then anti-China sentiment had
already spread like wildfires across the US and indeed many parts of the world,
thanks also to the riots in Hong Kong, which Western and pro-West media portrayed
China as the villain, when it was clearly a CIA act.) And Tsai Ing-wen was welcoming
all and sundry from the US to poison the China-US relationship further.
Trump was in a sorry
state when Biden assumed the presidency. Everyone had deserted him. Biden had a
chance to rejuvenate the country if he had chosen to work with China; instead,
he went on not only to outdo Trump in trade matters, but to do everything
possible to retard China. He was so consumed that he had totally neglected the life
of the average Joe in America. And ironically, the person who would succeed him
is his predecessor and a convicted felon for that matter.
Biden succeeded
in rounding up the leaders of much of Western world, Japan, South Korea, the
Philippines and even a supposedly non-aligned India to be his blood brothers to
his cause. Alliances – AUKUS, Five Eyes and what-have-you, were struck. But he
and his team were clumsy; their narratives too make-believe and no sooner, audiences
turned incredulous. Their roles in the Ukraine war and Gaza war showed the US’s
true colours.
Clash of Civilisations?
China’s continuous
ascendence and ability to surpass (as a matter of course, not design) any
country economically and technologically is just inevitable. Its human capital
is simply too formidable both in breadth and depth. Its cultural ethos is
different from the rest of the world. The West think they are holier than thou,
China accepts everyone as equal. Samuel Huntington uses the term “clash of civilisations”
to describe outcomes from differences like this, but I would argue that it is not
a clash, but a unilateral attempt by a bully to eliminate a perceived threat
from a brilliant, helpful and harmless newcomer. In China, if you do not seek
to impose your values or religion on others, the state will not bother you. It
does not patronize others and says its ways of governing and building social
order are superior to any country.
And the US is not even a "nation" in the true sense of the word!
Several old
civilisations have survived, but none has written records of their history the
way the Chinese have been keeping them – continuously for three thousand years!
The country has gone through civil wars, been ruled by minorities (twice for long
periods – Yuan and Qing) and suffered humiliations from foreign powers as
recent as the 1800s. It has finally reemerged and when it was clear that it was
about to regain its place in the world then the US began to wield its sledgehammer
to stop its rise. Xi knows his history well; he knows that because of US’s intolerance,
a great change unseen for a long time is about to happen to China and with
great ramifications to the world. And he is telling his compatriots and urging the
world to prepare for a great geopolitical quake.
Only if Taiwan is not in the Equation...
If Taiwan is not
a factor in this equation, China would have nothing to fear the Americans, come
what may. China sees the bringing back of Taiwan to its fold as a sacred
mission and is non-negotiable. Unfortunately, many Taiwanese have been so
indoctrinated – by the legacy of the Japanese rule and the lure of Pax
Americana – that they do not want Taiwan to be a part of China. Many still
think the latter is a communist state. Forget about the cultural roots stuff;
the separatists have no emotional attachment to it.
DPP’s hardline
stance is a godsend opportunity for the US. Its leaders are so willing for
Taiwan to serve as pawns for America to irritate China. Personally, Trump was
quite ambivalent about Taiwan, but he allowed his key staff to run wild – Mike
Pompeo (aided by his sidekick Yu Maochun), John Bolton, Nikii Haley, etc.
China has
therefore to arm itself to the teeth – to deter US interference in the event
that they have to take back Taiwan by force, which appears to be the only route
that they can take now. Unfortunately, this also causes the neighbouring
countries to be weary of China, despite what history has shown them.
Between
Trump and Biden, Who is Prettier?
Humility is no virtue
to American politicians, the exception being Jimmy Carter. To talk down or
humiliate opponents is the way to claw to the top. Trump is a master in this
art. Knowledge-poor and intellectually deficient Americans constitute most of
the population and they love his style, even though much the world knows that
he is really an emperor not knowing he has had no clothes.
Despite being a
convicted felon, Trump will be sworn in as the 47th President of the
United States of America on January 20.
Trump is well
known for his unscrupulousness, even to his close family members. He is a poker
player; he will raise his stake sky-high even though he has had no cards. I
would describe him as a diarrhoea patient, who will soil everywhere and leave
to others to clean up his mess.
Anything can come out of Trump's mouth!
Many analysts
have predicted that he will usher the world into the most uncharted territory
in modern history. Even before he takes office, he has already humiliated
Justin Trudeau by suggesting that Canada, which is perhaps America’s closest
ally, should join the US as its 51st state. He also wants to take
back the Panama Canal and proposes to buy Greenland from Denmark. Such kuáng yán (狂言(mad
talks) are not said out of jest, but with a degree of
seriousness that even shocks America’s closest allies, save Israel. The message
is clear, nobody, no matter how subservient you are to the US, will be spared
if he wants to rape you!
(Trump reminds
me of a real-estate billionaire I chanced upon to know when I was living in
Sydney in the early 2000s. He is Harry Triguboff, a Jew born in Shanghai. Hearing
that we were trying to sell a boutique hotel in one of the most coveted bays in
Sydney, through an intermediary, he loudly offered A$40 million. When I finally
met up with him, he sneeringly said to my face: Lousy property; A$20
million, take it or leave it!
Trump’s way is
just like that, shouting up a threat but only to withdraw it without feeling
any awkwardness if he is proven wrong. Didn’t he say he would end the Ukraine
war within 24 hours? What does he say now? Ditto his Canada, Greenland and Panama
mad talks. To me, they were
made just to project his imperial pretensions, nothing more than that.)
Who is next?
The leaders – in
EU and elsewhere – whom Biden has rallied to the US’s corner are likely to be
flushed down Trump’s WC. You have already seen Trump’s deep dislikes for queen
bees like Nancy Pelosi; Ursula von der Leyen will certainly be amongst his first
victims in this category. Sissies like Trudeau are also not his cup of tea. (And
this backboneless sissy is quick to move aside.) Pseudo saints like Narendra
Modi and leaders cloaked in religious robes are also going to be no-no to him. Only
machos like Vladimir Putin and Kim Jong Un will be treated with great respect.
And I suspect leaders like Marcos Jr and Lai Ching-te will be known just as
“who’s that fellow?” when he has to make references about them. Even Japan and
Korea; they mean little to him.
Despite his
“China, China, China” finger-pointing menace, he knows he cannot raise his
voice against Xi Jinping. But this inferiority complex is like a sword that
cuts both ways.
Trump’s trade
war against China was a failure by any count. Under normal circumstances, this
“luàn lái” (乱来,
absolutely reckless) man would certainly become another ex-President.
Fortunately for him, his successor Biden, instead of cashing on Trump’s silliness
and working with China to nurture a sick America to shape, got himself totally
consumed by taking every possible measure to retard China. He messed up the
country and gave Trump an easy win over his anointed successor Kamala Harris. Much credit of Biden’s downfall should be given
to his harebrained team – Antony Blinken, Janet Yellen, Llyod Austin, Gina
Raimondo, Katherine Tai, and Nicholas Burns. Burns was only the US’s ambassador
to China, but this nincompoop deserves my special citation for a simple reason:
Instead of advising Biden and his team what was truly happening in China, he
fed stuff that they loved to hear so that they could demonize and further
sanction China. (He was probably watching CNN all the time.)
Biden has only a
few days left in the Oval Office, yet this sicko is still furiously and
viciously sanctioning China. Don’t Americans understand Economics 101? If you impoverish
China, you also kill a market that no other country can replace? No wonder
Nvidia’s Jensen Huang is hopping mad! And in his farewell speech, he was so
shameless as to claim that, thanks to his presidency, America had won against
China and China could never surpass America! An old fool indeed.
Knight turning into a Frankenstein
Kishore Mahbubani tends to describe the situation that China and the US are having now as a race,
as if there should be a winner at the end of the day. I beg to disagree with
this thinker even though I salute him for his championship of China’s causes.
China’s national mission is not to beat the Americans; it just wants its people
to have a better tomorrow. Winning is not a be-all-and-end-all pursuit;
continuous self-improvement is. “Admiral” Zheng-he gave the Ming rulers the
impression that there was no longer any need for them to set sail after several
voyages, since China was well ahead of the world as far as they knew. But within
a hundred years, China lost its superiority in maritime skills. Qing’s Emperor Qian
Loong told off George Macartney. We all know the result. There is simply no
room for complacency.
The term Mission
in American leadership’s minds tends to be anchored on misplaced beliefs.
Biden’s mission was to contain China’s rise at all costs. But the horse has
already bolted, and the only tool left in his kit is America’s shaky might in the
semiconductor industry. But China’s no France or Japan (remember Alstrom and
Toshiba?); its resilience was astonishing, despite sanctions after sanction. It
is going to prove to be an un-accomplishable mission, but much harm has already
been caused the world because of US actions – killing collaborations and stalling
innovations, amongst others.
Unfortunately,
the knight that Trump created to address trade imbalances between the US and
China had been fed steroid by Biden and is now a Frankenstein that will destroy
America instead. Sinophobia has totally gripped the US today. Even its Supreme
Court judges are not spared. They have just handed down a 9-0 decision to
uphold the “sell-or-be-banned” on TikTok – all in the name of protecting
America’s national security. But America’s young are not buying this paranoia
anymore; they are flocking to Xiaohongshu (小红书, the
Little Red Book) and call themselves “refugees”.
The Seismic
Shift Will Accelerate
America is
already on course to lose its hegemon crown. Trump will accelerate the decline.
Never mind about
the existing social ills facing the country – gun violence, infrastructure in
dire needs of rejuvenation, rich-poor and race divides – and the general
ignorance of lesser Americans. Trump is a white supremacist through and
through. He will keep his word on closing the borders and expelling the
illegals. Where is he going to get the blue-collar workers to man the factories,
he wants Americans to bring back or build?
His tariff
weapons will be used – both against friends and foes – on anything if he thinks
America is being disadvantaged by its import. Tariffs are meant to protect
local industries; he wants to use them to generate revenue instead. Because of
the high cost of production in America and the dismal state of its supply
chains, his logic of using them to rejuvenate or bring back industries in
America will remain a pipedream. And the measure is certainly going to fan
inflation and cause hardships for the poor.
Universities and
R&D institutions will have difficulty finding or keeping talents to keep
them at the top. Chinese and Indians account for much of America’s intellectual
capital. Many top Chinese brains are already suffering discriminations and injustices
there. South Asians, hitherto seemed “favoured” (Look at their dominance in the
Fortune 500 list!), will soon find their skin colour a liability. We all know
how this policy will certainly weaken America’s prowess in science and
technology.
Americans account
for 4.2% of the world population, yet it represents about 26% of the global
economy (in nominal terms, but about 15.5% in PPP terms). Its share of the
world’s total export trade is about 8.5% (2022). 60% of the world trade is
still conducted in US Dollars.
However, this is
changing fast. China’s economy in PPP terms is already 19% and many countries
are now turning their face away from the US Dollar to settle trades if
situations allow. The tariffs and the availability of options in trade
settlements are likely to shrink the dollar’s dominance.
Now that Trump's stances are clear for the world to see, allies are also scrambling to find new bearings.
European countries are particularly vulnerable. There is a great leadership
void there. Few are wise or strong politically, several are outright deep-well
frogs. [ii] This time around, America
will have hardly any amongst them. And NATO may be a big casualty on this
front, with this, the wellness of America’s military-industrial complex will
take a big hit too, impacting on the economy as a whole.
Have the cake and eat it too
With the level of the national debt that
America is having and his shouts that he wants to reduce taxes further, Trump
will have to find money to fund the country’s fiscal needs. The Treasury will
certainly have to borrow more. Fewer countries are likely happy to leave their
money with the Americans; more will have to come from within – their own
corporations. Instead of having to pay taxes, they earn interest incomes from
Uncle Sam instead. Not a bad proposition at all! The multiplier effect of (a) a
better spread between return on assets and cost of capital, and (b) sky-high price-earnings
ratio commanded in stock markets, makes them laugh all the way to the bank.
This is essentially the brand of American capitalism that the rich in America
are too intoxicated to give up.
America has so
many military bases around the world and Trump wants allies to pay. But the
shine of America’s armour is wearing off fast. Who is happy to foot America’s
bills when it is no longer capable of offering real protection? If Japan and
South Korea were given the opportunity, would they want American soldiers on
their soils? The only leader that needs America today is perhaps Ferdinand
Marcos Junior, not because of his country’s needs but because of his fear of
losing the billions that his late father has stashed away in America.
Xi’s Taichi
Preparedness
Xi knew an
earthquake would soon be creating havoc on the world. He has long prepared
China for this eventuality.
Militarily,
China is unassailable in the West Pacific and South China Sea. Its DF missiles,
warships, drones and unmanned craft and robotic hounds are too advanced for the
Americans to match, not to mention its electronic warfare capability. And it is
already working on the 6th generation war planes.
Internally, its
social-economic structure is being aligned drastically. Transitional pains are
often being cited as examples of “China about to collapse” narratives or
assertions by the Western and pro-West media. High quality growth is now being
demanded in every aspect of the economy. Their products are setting standards
rather than playing catchups in the world – EVs, 6G, Quantum computing, AI etc.
There is only one last hurdle to clear: semiconductor foundries.
On the
infrastructure and energy fronts, China is acting like as if there is no
tomorrow – 50,000 km of highspeed rails, renewable energy installations in the
most remote and unthought of places like deserts, mountains and mud lands.
As for the outer
spaces, its Beidou navigation system and space programmes will soon be the
standard setters of the day.
No country can
replicate the type of supply chains that China has built up. Even industries
thought to be in the sunset stage are being revitalized to take on the world; a
case in point is on the textile front, where continuous R&D has allowed
Chinese producers to keep coming up with new materials to clothe the world.
Internally, it
is preparing its people for a better life – more money to consume, hence a
higher GDP. (Some economists are fast to
seize China’s apparent deflation during the last couple of months to support
their China-is-collapsing theory, as if inflation is a must for growth to
happen. They prescribe cheap credit as a solution. I find this argument lacks
common sense. Capital must always have a cost, lest it is vulnerable to abuse
like what you see in Japan and other low-interest rate regime economies. Mild
deflation from time to time is, to me, good for people.)
Blinken & Co
has always cited human rights as one of their reasons for sanctioning China.
They talked as if the minorities in China, particularly the Uighurs, are being
subjected to all sorts of sub-human treatments. In September last year, my wife
and I followed an Australian tour group and spent 28 days in Xinjiang. Our
fellow travelers are mostly White Australians, English or New Zealanders. Some
were keen to see if they could find detention camps or traces of suppressions.
Instead, they saw complete freedom in the lives of these minorities. (It is
good that China is allowing visa-free entries to most countries now.)
In short, Xi has
prepared China for total sufficiency in these four basic needs: 衣食住行 (yī shí zhù xíng – clothing, food, housing and transport). China
does not believe in allowing its people to make wild fortunes in education and
healthcare. The state ensures quality and low cost in both. Entrepreneurs are
free to make money, but they must not forget the need for them to act
responsibly socially. The whole system sounds too utopian to be true, but it is
happening there. Yes, we still have many crooked Chinese, but most of them have
gone abroad to scam. (Recently we are inundated with clips waning about these
scammers in Thailand and Myanmar. What a bad name they are giving to us!) But
China itself remains one of the safest countries for one to visit.
Love thy neighbours
For many years
after its launch, Xi’s Road & Belt initiative (BRI) was scoffed at as debt
traps by skeptics. Few can say that now. The initiatives have benefited
countries in Central Asia, Southeast Asia, Africa and South America. Their
leaders are accorded full diplomatic protocol, including being personally
received by Xi himself, when they visit China.
Americans’
support of a regime that is practicing genocide in Gaza and the Trump’s lunacy
will push China loathers to ponder a little. More countries are happy to join
BRICS and SCO, where China is a key driver. (One exception being India’s
Narendra Modi who seems to be building an India that manifests its people with
a “I can do better” complex against China.)
And serious
scholars are no longer shy to praise China. Kishore has been one of
the earliest to see China’s rise as a good thing for the world to have. Jeffrey
Sachs is another early champion of China’s causes. We often see George Yeo
doing that now. There are many others, notably Hugh White of Australia and
several in Europe and even India. Several scholars in Taiwan have become the
most effective spokespersons for China; they knowledge is impressive and their
arguments extremely convincing. Wiser Leaders like former Singapore Prime
Minister Lee Hsien Loong also knows China is on the right side of history, but
he has to couch his advice with diplomatic niceties. Ditto Malaysia’s Anwar
Ibrahim. Another new hope is Japan’s Shigeru Ishiba, who understands the need
to cultivate good neighbourhood.
Some still cannot run without blinkers
Regardless of how they are treated by
Trump, some will continue to want to lick his boot. I find the strangest of all
is Mongolia’s President Ukhnaagiin Khürelsükh. Mongolia is landlocked between
Russia in the north and China in the south, yet he is cosying up to the US to
establish all sorts of “strategic” relations. He must have thought that America
could help him dig an underground canal to connect the country to the Sea of
Japan!
But long can they remain stupid?
The
New Order
The US will
become a has-been like the UK, albeit still suffering from world power
delusions. NATO will become irrelevant; Germany and France will have to bite
the bullet and depend on Russia for natural gas to power their homes and
industries. The UK will probably do better, thanks to tourism.
The government
of China, long misrepresented by the West and pro-West media and hated by the
fake free world champions, can now walk tall. As people are better informed
and have a source to compare or look up, they will vote in better leaders.
China is certainly a role model for many, though total adoption of its systems
is out of question.
Japan will be
sucking up to China. South Korea and North Korea will try to accommodate each
other again.
India will
always be India – always trying to tell the world that they can do whatever
China does, and better.
As for the rest
of the decent world in Africa, Central Asia and Latin America, a period of
prosperity will be upon them, thanks to China Belt & Road Initiative and
other programmes, Southeast, Central and West Asia, Africa and the Latin
America will see better times. (Not much hope can be placed in some parts of West
Asia though.)
The UN will be
welcomed back to solve disputes. Fake currencies will have to disappear, and a
new “Bretton Wood” may also have to return to replace the IMF, so on and so
forth; all for the betterment of the world. `
Might
A New Trump Emerge Instead?
Trump is not a
hardcore ideologue. The next four years of his presidency might turn out differently.
China for the
past couple of months has been showing off its wares in the arsenal – the new
deadly DF missiles and the stuff at the Zhuhai Airshow. Two new vessels have also been spotted:
the 075 amphibious assault ship and the 076 drone carrier. And
the most awesome of all: prototypes of what are believed to be the 6th
generation fighter and bomber.
And with what he
has seen for himself in Boeing and the Pentagon, he might have come to conclude
that China can no longer be subdued militarily. And he might decide it is time for
him to work with China to claim a “stateman” halo in history.
Looking at
Trump’s line-up to run his administration, one may fear the return of
Pompeo-ism. But I have a more optimistic read. Trump is not the type to allow
people like Marco Rubio to run his foreign policy or Peter Navaro to have a
free hand to deal with China on trade issues. He will call the shots, good or
bad. His honeymoon with Elon Musk may also not last long, even though I believe
Musk will serve as a useful bridge between China and the US.
Trump has also
spoken to Xi over the phone. His tone appeared to be more measured. He was even talking about working with China to do good for the world, or something to that effect.
Might he become
a born-again something?
Regardless, the dà biàn jú is bound to happen.
Let us keep our fingers crossed.
[i] A term used to describe a highly
probable, high impact, yet neglected threat. The risk is evident, and the event
is foreseeable.
[ii]
Examples are Finland’s, Sweden’s, Lithuania’s and many top and second-tier
leaders s in Germany, France, and Czechia; exceptions are Hungarian Prime
Minister Viktor Orbán and Serbian President Aleksandar Vučić.