How Has China Gained Such Worldwide Influence?
By Dennis Dowling
China Makes Loans to Emerging Nations
There are many reasons that China has become so influential worldwide, but one of the greatest is its loans to poor and emerging nations. Currently, there are 42 nations that owe China more than 10% of their Gross Domestic Product. (Gross Domestic Product, or GDP, is the annual value of all the goods and services produced by a country). For five of these countries, the loan value now equals or exceeds 29% of GDP. Most of these countries either have not been or will not be able to repay those loans. What happens as these loans come due? China lends them even more money to repay the loans and cover other expenses at an even higher interest rate, which is common for loans at risk. Can you imagine what China requires in exchange for these loans?
Putting China First
Where did China get all this money? We Americans gave it to them. For over 20 years, we have been purchasing items made in China because they were pennies cheaper than buying the same products sitting beside them on the shelf that were made by a US company. Many of the companies that manufactured those products domestically have now gone broke and are out of business, or else they moved to China, where they too could make their products more cheaply. As a result, we have sent billions of dollars every year to China.
Slave Labor Is Cheap Labor
How can China make cheaper products? The Chinese Communist Party (aka the CCP) controls everything in China. This includes the wages of the workers as well as the slave labor that produces these products. This is one of the reasons Chairman Xi claims that the Chinese form of government is so much more efficient than that of the United States, and this is why China is on course to world domination. Although the United States has many shortcomings in its attempts to influence countries, at least we ended slave labor over 150 years ago. (I could go on about how our government has created a new form of slavery by creating dependency on handouts from so-called welfare programs, but I digress.)
Nowhere to Go
The CCP keeps Chinese wages below the prevailing world scale to lure manufacturers to their shores. This is unlike California, which is busy passing more regulations to increase salaries artificially. This is why many companies and individuals are now fleeing California. Unlike California, the Chinese people have no place to go. If the rest of the US continues to try to emulate California, neither will we.
Dennis Dowling Bio
Dennis Dowling, chemical engineer, formerly of Exxon Chemical Company, has written articles for the Independent Sentinel and American Thinker. An employee of Exxon Chemical Company for 32 years, he worked for several years on the redesign and implementation of Exxon Chemical’s key business processes around the globe.
Mr. Dowling is not related to the editor of the Sentinel.