China, Trade and Power: Why the West's Economic Engagement Has Failed

China's accession to the WTO in 2001 will define the geopolitics of the 21st century. This book looks at how the Chinese Communist Party has retained and cemented its monopoly of political power, producing undreamt of riches for the political elite. It has reshaped the geopolitics of Asia and the world, and economic liberalism has lost its moral foundation due to the lack of wage growth and inflation targeting by Western central banks. Understanding how the policy of indulgent engagement with China has affected Western society is essential to change direction for the better and row back from the harmful consequences of China's accession to the WTO.

Format: Hardback
Length: 160 pages
Publication date: 18 October 2018
Publisher: London Publishing Partnership

Few people could tell you what happened on 11th December 2001, yet China's accession to the World Trade Organization (WTO) will define the geopolitics of the 21st century. What were Western leaders thinking at the time?

This book tells the story of the most successful trading nation of the early twenty-first century. It looks at how the Chinese Communist Party has retained and cemented its monopoly of political power - producing undreamt of riches for the political elite. It is the most extraordinary economic success story of our time and has reshaped the geopolitics not just of Asia but of the world. As China has come to dominate global manufacturing, its power and influence have grown. This economic power is being translated into political power, and the West now has a global rival that is politically antithetical to liberal values.

Meanwhile, economic liberalism has lost its moral foundation, in part because economic outcomes are not perceived to be the result of fair competition. The weaknesses of the West's democratic model are being laid bare as the lack of wage growth coupled with the policy of inflation targeting by Western central banks has led to falling real incomes for the many, and rising asset prices that have benefited the few.

In order to have a fighting chance of protecting the freedoms of liberal democracies, it is of the utmost importance that we understand how the policy of indulgent engagement with China has affected Western society in recent years. Only then will the West be able to change direction for the better, and row back from the harmful consequences of China's accession to the WTO.

The Chinese Communist Party has been able to retain and cement its monopoly of political power, producing undreamt of riches for the political elite. This has been achieved through a combination of economic policies that have prioritized growth and development, as well as political measures that have suppressed dissent and maintained control over the media and civil society.

One of the key factors that has contributed to China's economic success is its ability to attract foreign investment and technology. The country has implemented a series of policies that have made it an attractive destination for foreign businesses, including low taxes, streamlined regulations, and a large market for goods and services. This has led to a surge in foreign direct investment (FDI) into China, which has helped to fuel its economic growth and development.

Another factor that has played a role in China's economic success is its large and diverse population. With over 1.4 billion people, China has a vast pool of labor and resources that can be harnessed for economic growth. The country has also implemented policies that have encouraged population growth, such as one-child policies and incentives for rural-to-urban migration, which have helped to maintain a steady supply of labor for its industries.

However, China's economic success has also come at a cost. The country has faced a number of challenges, including environmental degradation, income inequality, and political unrest. These challenges have led to calls for greater political and social reform in China, as well as increased scrutiny from the international community.

One of the most significant challenges that China faces is environmental degradation. The country has been criticized for its high levels of air pollution, water pollution, and waste disposal, which have harmed the health of its citizens and contributed to climate change. In response, China has implemented a number of policies aimed at reducing pollution and promoting sustainable development, such as the introduction of emissions trading systems and the promotion of renewable energy sources.

Income inequality is another challenge that China faces. The country has experienced rapid economic growth in recent years, but this has been accompanied by a growing gap between the rich and the poor. According to the World Bank, China has the largest income gap in the world, with the top 1% of the population earning more than 10 times the average income of the bottom 10%. This has led to social unrest and calls for greater redistribution of wealth.

Political unrest is also a challenge that China faces. The country has a history of authoritarianism and has been criticized for its lack of political freedom and human rights abuses. In recent years, there have been a number of high-profile protests and demonstrations, including the Tiananmen Square protests of 1989 and the Hong Kong protests of 2019. These protests have highlighted the need for greater political and social reform in China.

Despite these challenges, China's economic success has continued to grow. The country has become the world's second-largest economy, with a GDP of over $14 trillion. This has led to a surge in Chinese exports, which have helped to drive economic growth in other countries around the world.

In conclusion, China's accession to the WTO has had a profound impact on the geopolitics of the 21st century. The country's economic success has been driven by a combination of factors, including its ability to attract foreign investment and technology, its large and diverse population, and its commitment to economic growth and development. However, this success has also come at a cost, including environmental degradation, income inequality, and political unrest. In order to protect the freedoms of liberal democracies, it is important that we understand how the policy of indulgent engagement with China has affected Western society in recent years. Only then will the West be able to change direction and row back from the harmful consequences of China's accession to the WTO.

Weight: 348g
Dimension: 205 x 156 x 19 (mm)
ISBN-13: 9781907994814