China’s bid for world domination

The rumour that China plans to dominate the world has been circulating for decades. Its isolation from the West for a significant period of time made it even easier to turn the country into a Bogey Man. Some argued that it was a misunderstood country, whilst others held firmly to the view that China could never be trusted. These days, with greater media coverage of the world’s most populous country, we perhaps have a clearer view of its ambitions, and it seems some of the old rumours contain more than a grain of the truth.

Global expansionism is one of China’s tools. John Glynn writes that Beijing’s ‘Going Global’ strategy emerged in 1999, and it signalled the end of the “Mao-era mindset of self-reliance.” China suddenly started taking advantage of a boom in world trade and global market investments. Glyn says, “The idea that one government could commandeer sub regions in Asia, Europe and Africa, which account for 64 percent of world population and 30 percent of world GDP, might sound ludicrous. But try telling this to the Chinese government.”

Glyn also warns in his article that President Xi is engaged in an ideological and economic venture, and that it is clear the country has massive global ambitions, if its investments are anything to go by: “Between 2005 and 2017, the combined value of China’s global investment in construction was $1.8Trillion.”

What does it construct? The Chinese Government is making a concerted effort to increase infrastructural, economic, and political connectivity between China and the other countries of Asia, Africa, and Europe. Glyn calls it a “Belt and Road” initiative. But as he also says, it is essentially a new Silk Road connecting China to the rest of the world.

Glyn also remarks, “While other countries find themselves consumed by petty squabbles, Beijing officials discuss square footage, potential monetary gain, and militaristic strategies.”

It has invested widely in Energy, Transport, Real Estate and Metals — the key ingredients for developing infrastructure, and this has worried the Western governments, particularly the Trump presidency. That’s why he’s so keen to buy Greenland, an island mass that is rich in rare earth metals.

It is also the case that China has been involved in lending large amounts to other countries, and some fear that part of its strategy is to saddle these countries with “unimaginable levels of debt.” Furthermore a lot of this debt is “hidden” and that is especially worrying. Hidden debt means that the borrowing isn’t reported to or recorded by official institutions. A Kiel Institute study found that other countries’ debt owed to China has soared ten-fold since 2000, and it stated, “This has transformed China into the largest official creditor, easily surpassing the IMF or the World Bank.”

Much of this money is going to emerging markets. This is not because China wants to help grow these economies, but because it allows China to put those countries in a position of “indentured servitude.”

It is also looking to expand its military bases internationally. The US defence department expects China to add military bases around the world to protect its investments in its One Belt One Road initiative. Currently Beijing currently has just one overseas military base, in Djibouti. However, officials are planning others, including one in Pakistan.

This repressive regime has global ambitions and they are closer to being a reality than ever. Can China be stopped? The answer would appear to be — NO!

Don’t be afraid of robots, says World Bank

The World Bank has published a report annually since 1978. Each report focuses on a detailed analysis of one aspect of economic development and for 2019 the topic is robots and automation and how it is impacting on the world of work.

Bloomberg interviewed Pinelopi Koujianou Goldberg, the World Bank’s Chief Economist, about the report and one of her first statements was: “This fear that robots have eliminated jobs — this fear is not supported by the evidence so far.”

The fear arises from the fact that in the first world a substantial number of jobs have been lost in the industrial sector, while in East Asia the there has been a rise in employment in industry. The World Bank report notes the anxiety about job losses, but claims “the number of jobs lost to automation is about equal to the number of jobs created, even if technology is changing the nature of those jobs in several ways.”

In the World Development Report 2019: The Changing Nature of Work, World Bank Group President Jim Yong Kim said:

“The nature of work is not only changing — it’s changing rapidly. We don’t know what jobs children in primary school today will compete for, because many of those jobs don’t exist yet. The great challenge is to equip them with the skills they’ll need no matter what future jobs look like — skills such as problem-solving and critical thinking, as well as interpersonal skills like empathy and collaboration. By measuring countries according to how well they’re investing in their people, we hope to help governments take active steps to better prepare their people to compete in the economy of the future.”

Koujianou Goldberg also commented on the changing nature of work, telling Bloomberg: “This is the fourth industrial revolution, there have been three before, and in each case we managed to survive so it’s not the case that machines completely eliminated humans.”

However, not everyone agrees with the World Bank’s assessment of the situation with regard to a radical change in the types of jobs available. Gizmodo argues that the World Bank has not considered the quality of the jobs available, or the social and cultural impact of the loss of certain jobs and responds to the idea of robotics bringing a fourth industrial revolution as an idea to be treated with caution. Gizmodo also says, “There is a reason that many of the regions hit hardest by automation voted in the largest numbers for Trump.”

It also points out that reports like the one from the World Bank are useful as a window into how elites — i.e., those doing a lot of the automating — view mechanization.

What is clear that there are good arguments from both viewpoints and that what we need is dialogue between the two, so that we plan for an industrial revolution that is less harmful to those communities most affected by automation than in the past.