The following article by Sara Flounders unpicks US Treasury Secretary Janet Yellen’s recent demands that China “shift to a market-oriented system”, drop its putative “coercive actions against American firms”, and participate in the US’s unilateral and unenforceable sanctions against Russia.
Sara points out that the US is in no position to complain about China’s subsidies to state-owned enterprises, given that “every capitalist economy, including that of the US, subsidizes key industries”; some of those who suffered ruinous poverty as a result of the 2008 financial crisis may remember the trillions of dollars of subsidies that bailed out the banks rather than the poor. Meanwhile calls for China to end “barriers to market access for foreign firms” ring decidedly hollow in the light of hundreds of US trade barriers and sanctions on China.
China’s use of “non-market policies” is not in itself the source of the US’s escalating hostility. “Most frustrating to the imperialists is that the socialist development of the economy is guided by the 90-million member, popularly supported Communist Party of China. There is a party cell in every workplace, school and neighborhood. This is what US politicians and corporate investors consider a ‘dictatorship,’ restricting their freedom. On the other hand, unelected billionaires making all decisions are proof of ‘democracy.'”
Sara observes that China’s socialist strategy has brought about “the largest and most rapid improvement in material conditions in modern history”. Furthermore, via its Belt and Road Initiative and other programs, China is enabling the emergence of a truly multipolar order – a serious threat to the US-led imperialist system. The article concludes that Chinese socialism is creating important gains for the global working class, and should be defended and supported. “It is in the interests of workers here to defend China and condemn the onerous demands of US imperialism.”
The article was first carried in Workers World.
What is the material basis of the growing hostility on every level of the U.S. ruling class toward China?
No great struggle is based on the personalities or aspirations of individuals. At the root is a very concrete, material basis that drives the conflict. Otherwise, meetings, discussions and diplomacy would succeed. These techniques can paper over differences – but not fundamentally resolve them.
Secretary of the Treasury Janet Yellen’s talk on June 7 to a group of U.S. businesspeople at the American Chamber of Commerce in China exposed how well these U.S. corporate heads understand the basic, irreconcilable difference. They are deeply frustrated about their inability to maintain their dominant global position, as well as by China’s non-compliance with their self-proclaimed “rules-based order.” (tinyurl.com/2s45jh53)
Yellen is a top capitalist economist. She is a former Chair of the Federal Reserve and headed the White House Council of Economic Advisors. Yellen has taught economics at Harvard, Yale and the London School of Economics. Her words carry weight and reflect the thinking of imperialist think tanks, strategists, politicians and businesspeople.
Yellen’s talk in China was similar to a longer presentation she gave at the Johns Hopkins School of Advanced International Studies on April 20, published in preparation for her announced trip to China. It sharply defined the Biden administration’s demands on China.
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