How US could use pipelines, Russian assets to tame EU – Asia Times

The most recent version of Trump’s source agreement with Ukraine, according to a Reuters report earlier this month, includes an” Easter ovum” that would offer the US International Development Finance Corporation power of the EU’s gas pipeline.

Another Reuters statement claimed that French and German companies are interested in the possibility of resuming exports along that way. Together, these studies suggest that the US wants to regulate Russia’s gas exports to Europe.

The logic would be to gain more influence over the EU in the escalating trade and trade war, boost the EU’s struggling market so that it can be a more steady market for British exports if a deal is reached, and encourage Russia to accept a ceasefire in Ukraine by restoring some of its missing power export revenue.

Additionally, the US may attempt to control the four Nord Stream pipes, whose scenarios were examined here and here, respectively.

If Trump doesn’t agree to form a government of national unity on his own, then other means would be required for the Russian-owned Nord Streams, despite the possibility that control of the Russian pipeline and the Kiev-owned Petrol may be obtained through his proposed resource deal with Ukraine.

The estimated US$ 5 billion worth of seized Soviet assets under British control wouldn’t suffice to replace the almost$ 20 billion that Nord Stream’s <a href="https://substack.com/redirect/da6dc0e8-f2f7-42bb-a576-a7c7826d9779?j=eyJ1IjoiN25tMiJ9.ArAjoe3w0B9T_qIn_sADWsrqWSMS2r8ZypYyWEAFxWc” target=”_blank” rel=”noreferrer noopener”>1&nbsp, and&nbsp, 2&nbsp, total cost.

The additional$ 15 billion ( or more if Russia demands it and the US agrees ) could be obtained by urging the EU to release the sum of the seized Russian assets under its control.

If the EU rejects it, Russia and the US had come to terms with a creative economic arrangement whereby Russia grants the US legal control of this sum, Russia grants the same amount to Russia, and Trump uses the$ 15 billion of newly US-owned assets as a tool in their trade dispute.

A Bloomberg source said it would take this approach into account if and when a Ukrainian peace is in place, and how Moscow handles its seized property.

When taken to its extreme, the$ 300 billion worth of assets the West seized from Russia during the Ukraine war could be sold to the US through these channels for significant-scale purchases across a range of industries, which might help to strengthen the two parties ‘ strategic economic partnership in a post-conflict era.

White House Press Secretary Karoline Leavitt just stated in response to that statement,” There is an opportunity for Russia to end this battle and perhaps that could be financial partnerships with the United States.”

In spite of standard speech, Russia has survived the war without the seized goods and doesn’t anticipate them being fully or even completely returned. In the context of the , nascent , RussianUS , and” New&nbsp, Detente,” this might be the most advantageous use of them.

Additionally, this imaginative economic diplomacy may offer the US a lot more leverage over the EU. The US’s control of the majority of Russian pipeline gas imports would encourage the Union to make deal compromises.

Whatever seized Russian assets that the US acquires legitimate rights of from Moscow might also serve as a justification for mounting pressure on the alliance in this environment.

This article was originally published on Andrew Korybko’s Substack and is republished with kind authority. Subscribe to the Andrew Korybko Newsletter below.

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Trump’s misguided and deluded tariff crusade – Asia Times

The financial advisors of Donald Trump see tariffs as a magic cure for America’s problems, as well as a chance to revive manufacturing, stabilize the dollar as the reserve currency, and reduce exploding public debt.

However, this strategy is based on conflicting financial goals that defy logic and are a property of accounts. Reciprocal taxes, including a staggering 145 % on China, perhaps bring in money for the government, but they also run the risk of long-term stagnation and fractious alliances because they fail to target America’s fundamental economic imbalances.

Trade partners like the EU and India face a significant threat of global economic integration as a result of the tax policy, which could stifle decades of economic development and alleviation around the world.

1.) Bringing back manufacturing

Trump’s team claims that American manufacturing has been harmed by China’s money manipulation, technology theft, and affordable exports.

According to them, offshoring destroyed 50 million American employment, a figure that was exacerbated by the impact of automation at once. However, digital photography replaced analog jobs, e-readers replaced printing, and robotics redefined recently manual assembly procedures—a fact that Trump’s advisors can’t seem to deny.

Manufacturing made up 11 % of the US GDP in 2024, down from 20 % in the 1980s, a decline that was caused by US technological advancement, US failures to retrain its workforce, and changing global supply chains.

Taxes aim to entice factories again and promise to restore America’s “great again” by preventing imports from domestic producers.

2.) preserving the dollar’s position of power

The economy’s position as the world’s reserve currency is also given precedence in the policy. Through BRICS , China and Russia are looking into options, which has prompted Trump to rely on taxes as a barrier.

Trump pledged 100 % tariffs on all countries pursuing de-dollarization in his inaugural address in January 2025. This threat has now materialized, with 14 % tariffs on China and various other countries ‘ levels within 90 days.

These tactics aim to intimidate trading partners into continuing to deal with the dollar while preserving the US’s ability to use profitably. India is at a high risk because of tariffs, which could stymie its ability to access National markets and stymie its export-driven development, with$ 120 billion in US business and$ 437 billion in full global exports by 2024.

3.) reducing debts and funding tax breaks

Lastly, Trump’s administration intends to pay off the country’s$ 36.21 trillion public debt, which is projected to total$ 50 trillion by 2035, while allowing for tax breaks for the wealthy and those making under$ 150,000.

Price income, which is expected to be$ 300 billion annually, is expected to cover these expenses and help maintain the strength of US Treasury securities by keeping the money strong. This trifecta of industrial revival, dollar dominance, and debt management appears strong but falters under scrutiny because each objective undermines the other in a jumble of monetary contradictions.

Contrasts in economics

A review of shared exclusion is the pursuit of a strong dollar and a rebound in manufacturing. A solid dollar drives up the price of US products, pricing them out of trade industry. US exports of goods totaled$ 2 trillion in 2023, less than China’s$ 3 trillion, a gap that was made wider by America’s higher wages and currency strength.

The 1985 Plaza Accord, which devalued the dollar by 50 % against the Japanese yen, helped US exports by 20 % in three years, demonstrating that a weaker dollar is necessary for the revival of manufacturing.

However, devaluing the dollar today would weaken its reserve currency because global central banks, which have an estimated$ 7 trillion in reserves, might convert to euros, yuan, or yen, cutting down demand for US Treasury bonds.

The industry balance and foreign investment in US Treasury securities are in conflict. Because trade deficits, which total$ 400 billion for China in 2023, create dollar reserves, countries like China, Japan, and South Korea, which together hold trillions of dollars worth of US bonds, invest.

Great taxes reduce these deficits by stifling US exports, which results in lower bond purchases. Local use, not just foreign business strategies, contributes to the$ 918 billion trade deficit in the US in 2024.

Taxes could lead to US inflation, which is projected to rise to 3 % in 2025, causing Fed rate increases that could halt economic growth and send a struggling economy into recession. The Fed issued a price cut announcement in 2024, but a weaker money or lower provides did dissuade bond investors, making debt management even more challenging.

The tension between the dollar’s power, Fed rates, and friendship appeal adds yet another layer of vacuity. A strong dollar maintains bond desire, but price reductions lower yields, which frightens foreign investors.

If inflation rises, which will lead to price increases, lending becomes more expensive, creating a tighter governmental buffer for income cuts. These contradictions highlight the vulnerability of the policy: tariffs that aim to revive manufacturing could potentially sabotage other goals like debt financing. Hence, the policy runs the risk of delving into the very goals it aims to achieve.

No unusual villains, but structural flaws.

Trump’s team claims that the trade deficit is the result of a story by foreigners to lie on the US, including China, the EU, Mexico, and Canada, but that America’s fundamental squander is the real culprit. The US runs a$ 2 trillion fiscal deficit of 6 % of GDP in 2024 because it uses more than its means.

The economy’s supply position, which encourages this” spend-now, pay-later” culture, contributes to the current account deficit, as well as the business gap. Compared to China, American households save only 3 % of GDP, while government deficits, which have grown due to tax breaks and subsidies, increase the imbalance.

Both the Republican and Democratic parties bear the brunt of the blame, favoring rich lobby groups and adopting policies that favor profit increases. A Senate-amended budget resolution that authorized$ 5.3 trillion in tax cuts,$ 521 billion in spending increases on defense and immigration, at least$ 4.2 billion in spending cuts, and a$ 5 trillion debt limit increase was approved by the House of Representatives on April 10, 2025.

With international central banks holding$ 7 trillion in resources, the US can borrow cheaply because of the economy’s pleasure. However, this conceals the root cause of persistent US spending. With a$ 2 trillion deficit, taxes are a drop in the bucket when it comes to reducing taxes or reducing debts without changes to rights like Social Security or Medicare.

Trump avoids Washington’s governmental recklessness by demonizing trade partners, putting the country at risk of having trade war that had cost its supporters, including India, Vietnam, the EU, and Canada, trillions in exports and destroy global markets.

Traditional errors only highlight the absurdity. The Smoot-Hawley Tariff Act of 1930, which raised tariffs to less than 60 % ( as opposed to tobacco at 64.78 % ) and sugar at 77.2 %, exacerbated the Great Depression by halting global trade.

Trump’s tariffs, while less drastic, sound this protectionist urge while disregarding the interdependence of contemporary markets. No tariffs can fix the trade deficit, which is a mirror of private choices that include low savings, great consumption, and deficit spending.

A mistaken expedition

Trump’s tariff plan is a quixotic attempt at financial glorification that often leads to failure. Depreciation threatens the dollar’s supply status and relationship demand, while a strong dollar smothers manufacturing.

Taxes does increase profits, but they also increase prices, causing harm to customers and friends like the EU, Japan, and India, whose trade markets are impacted by disturbance. The trade deficit is a reflection of America’s governmental constipation, no foreign hatred, and cannot be resolved by stricter laws only.

Washington must be reining in order to advance, not engaging in trade war. For green growth, it is essential to address excessive spending, including tax cuts and tax reforms that allow the rich and middle classes to pay fair amounts of taxes.

Debating lobbying’s influence on fiscal policy may reduce deficits more efficiently than tariffs, streamlining entitlements, and lowering house discounts. The US has rekindle trust with trading partners worldwide rather than turn them away with protectionist nonsense.

Without these difficult choices, Trump’s vision of American glory will continue to be a hallucination, leaving the US economy weak, the dollar falling, and the rest of the world skeptical of US leadership.

Bhim Bhurtel is a member of the X network, @BhimBhurtel.

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AI-controlled fighter jets are closer than you think – Asia Times

Could there be a time when fighter planes fly without pilots and are controlled by arbitrary intelligence?

An impending battle jet, according to US Rear Admiral Michael Donnelly, might be the navy’s final aircraft with a captain in the aircraft. That represents a significant, if not totally unexpected, shift in how we view the future of aerial warfare.

The US Navy is not the only one. Uncrewed options are even mentioned as a unique prospect by other programs working on the development of next-generation fighter jets.

But, we have previously been around. The US Navy’s top leaders claimed that the most recent ship fighter plane had been purchased in 2015. For the warrior pilot time, early memoirs were being written as far back as 1957. But, is there anything different happening right then?

Kinematic efficiency refers to a warrior jet’s ability to maneuver, promote, and maintain high speeds, which is essential for air fight. Estimates range from 80 % to 80 % depending on how much pilots lower kinematic performance. Despite the fact that this number does be disputed, uncrewed aircraft are undoubtedly blessed with a number of important benefits.

These aircraft you operate in ways that are beyond the reach of a flown plane without the use of life support systems like ejection seats and oxygen supplies. However, new trends are making militaries completely reevaluate the individual pilot’s part.

AI-enabled systems are already demonstrating better performance during military exercises. A human controller maintains power in the existing remotely piloted aircraft. This design is referred to as “human-in-the-loop.”

AI is now enabling the development of “human-on-the-loop” systems ( in which AI picks and engages targets autonomously and takes a step back, supervising and intervening if necessary ) and even “human-out-of-the-loop” systems ( in which AI picks and engages targets autonomously ).

Although contentious, the former category does offer important benefits. A fully automatic system could outperform any mortal operator in a situation where milliseconds matter, to the extent that older defense leaders have indicated they are willing to accept AI’s lethal decision-making in certain circumstances. In contrast to a mortal operator, autonomous systems may agree to the laws of armed conflict more forcefully.

Unpiloted fight jets also have the ability to save money. Not least of all because of the training and tools required to support aircraft, fighter jets are expensive to build, run, and maintain.

A security drone’s existence cycle cost about half as much as a superior platform, according to a 2011 study. And less expensive aircraft are crucial because of the potential costs that air forces will suffer in a conflict with Russia or China.

Risk reduction is another benefit of fully automatic airplane. Uncrewed systems provide a way to restore the balance without risking lives at risk of dying or being captured as NATO forces struggle with a lack of skilled pilots for possible conflicts between state.

F-16
As part of the Venom automatic fighter jet program at Eglin Air Force Base, Florida, an F-16 Fighting Falcon undergoes changes. US Air Force / Samuel King Jr.

So, one opportunity for militaries is to increase the use of remotely piloted plane, such as drones used in Afghanistan and Iraq. This would theoretically guarantee that people would continue to have power over how they use arms.

Instead of having additional systems struggling to operate in angry airspace, the only difference would be that these systems would function as the fleet’s backbone. This may involve upgrading them using cutting-edge technologies like secrecy. This helps aircraft in reducing their risk of being detected by the enemy’s radar and infrared ( heat ) sensors.

Self-driving fight aircraft, which have the benefits of on-or-off-the-loop technologies, would be a step away from this. In order to eventually be transferred to drones, Project Venom at the US Air Force trains AI in changed F-16 jets.

As part of mingled human and machine teams, these drones will run alongside crewed aircraft. However, it might be possible to create a fleet of autonomous jets only as capable as those operated by humans if this AI technology was kept on the F-16s ( or moved to more advanced fighter planes ).

A more extreme approach would be to completely abandon conventional fighter jet. The proponents of this idea picture flocks of inexpensive, disposable robots battling it out against enemy forces. True” swarming” could alter the equation, even though current drones have restrictions on range, payload, and manpower requirements.

restrictions at the moment

What prevents army from pressing forward with these choices, then? a few things

AI is not yet available. All of this is supported by machine learning, a set of AI that lets systems know from past mistakes. However, it also struggles with the natural creativity and confusion of battle.

Computer vision, the branch of Intelligence that allows pcs to view images and videos, may be obstructed by merely putting tires on an aircraft. Training AI to work in the entire range of potential combat situations is therefore a daunting task. Robotic warfare, in the terms of one air army chief, “is centuries away.

X-62A Variable Stability In-flight Simulator Aircraft (Vista)
The X-62A Vista plane was piloted by the US government using AI agencies. Photo: Kyle Brasier / The Conversation / USAF

Communications are another concern because remotely operated helicopter systems, particularly those that are interconnected and swarming, require information links.

Patterns may be pushed in the same direction, with either accepting freedom to allow the plane to continue fighting even if it is cut off, given how much money opponents are investing in jamming these signs.

However, the true reduce might be a concern of crossing the Rubicon. Although the US and its allies have a de facto” no first use” policy on fully autonomous weapons, the demands of warfare against an enemy who is willing to use such systems may undermine these guidelines.

The US Navy’s statement serves as a reminder that the individual warrior pilot’s age may be approaching. However, the upcoming battle may decide that for us.

Arun Dawson is a PhD candidate at King’s College London’s Department of War Studies.

The Conversation has republished this essay under a Creative Commons license. Learn the article’s introduction.

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Anwar’s highly calculated handshake with Min Aung Hlaing – Asia Times

The political landscape of Southeast Asia changed when Malaysian Prime Minister Anwar Ibrahim met Myanmar Senior General Min Aung Hlaing on April 17 in Naypyidaw in his power as ASEAN’s 2025 circular seat, albeit only slightly and with significant tension.

The conference, which was allegedly centered on humanitarian assistance following the devastating earthquake that struck Myanmar’s northern and central parts on March 28, was the first official ASEAN party’s attend to the military dictatorship since the Five-Point Consensus was overthrown. &nbsp,

Anwar shakes the hands of a general whose government has killed, displaced, and dismembered the very idea of a consolidated Myanmar in a time that does come to define Malaysia’s ASEAN leadership after staging a democracy-suspending revolt in 2021.

There is no disputing the metaphoric significance of the face. ASEAN had previously avoided high-level engagements with Min Aung Hlaing to prevent ratifying the Tatmadaw’s rule of law after years of intentional political mileage to prevent legitimacy. &nbsp,

Anwar’s choice to change that pattern has rekindled questions about ASEAN’s commitment, coherence, and credibility, regardless of humanitarian justification.

Unintentionally, the gathering gave the junta a much-needed photo opportunity to sign local recognition, if not acceptance, despite its philanthropic nature. &nbsp,

Anwar and Min Aung Hlaing were swiftly featured in Naypyidaw’s meticulously choreographed media coverage, confirming the claim that the junta is Myanmar’s only genuine ruler.

However, portraying the conference as a political capitulation would be exceedingly straightforward. The attend of Anwar immediately produced beneficial results. &nbsp,

First, it authorized the ASEAN Coordinating Center for Humanitarian Assistance on Disaster Management ( AHA Center ) to coordinate the delivery of humanitarian aid through secure corridors. &nbsp,

Teams from Malaysia are now gaining exposure to earthquake-hit areas that had formerly been closed off as a result of the ongoing legal conflict through international and local NGOs.

Second, Anwar insisted in public and private on the necessity of a ceasefire and unrestricted access for aid workers, particularly in disputed areas held by ethnic armed organizations ( EAOs ) and People’s Defense Forces ( PDFs ). &nbsp,

The Tatmadaw has hesitantly agreed to a momentary cessation of hostilities in some areas, according to diplomatic resources in Putrajaya and Jakarta, though the validity and viability of this promise are still uncertain.

Third, Anwar used the situation to give what observers characterized as a “polite but company” censure of the military regime. &nbsp,

Anwar emphasized in a media briefing following the visit that democratic legitimacy is not a prerequisite for ASEAN’s charitable problem. This support does not make you recognize. He continued,” It shows how concerned we are for the citizens of Myanmar.”

However, the visit did not include any significant omissions, much like diplomatic missions that are gentle. Most strikingly, Anwar did not meet with members of the human government-in-exile, the National Unity Government ( NUG), which enjoys growing international acclaim and domestic allegiance. &nbsp,

He also did not speak with representatives of civil society or cultural groups from the Karen, Shan, or Rakhine communities, who are now in charge of sizable stretches of country and whose participation is essential to any successful peace process.

However, some of these organizations have connections to international crime syndicates. Evidently, Anwar was not required to meet them, particularly given how acidic their actions have become along Myanmar’s edges with Thailand and China.

These organizations are operating fraud towns, cybercrime hotspots, and trafficking networks, many of whom operate with tacit or strong protection from neighborhood militias. &nbsp,

Although Myanmar’s internal collapse caused these syndicates to rise unchallenged, these organizations may function as a scapegoat for a while and then receive a reward for it.

However, the inability to bring the visit together with non-junta voices and organizations gave the impression that ASEAN may be drifting up to its old ways of favoring state-centric politics over inclusive dialogue, whether fair or not. &nbsp,

This could stifle the pro-democracy actors and reinforce the tale that ASEAN is unable to defend its own consensus-based principles. &nbsp,

However, a large study would also be mistaken. On August 8, 1967, ASEAN was established to address issues relating to non-traditional protection. It still has a long way to move despite years of progress.

Additionally, the attend took place in the midst of growing local unrest. Anwar’s meet must now be viewed in relation to Donald Trump’s growing price war with China, which has always been the catalyst for the post-Cold War order’s collapse.

Trump’s disruption has redefined world trade, not by creating new regulations, but by creating new contradictions. Southeast Asia has become a new frontline of corporate vulnerability as a result of the financial fragmentation, which has fueled authoritarian regimes and increased global South dependency.

Myanmar is the canary in this collapsed world management system. Anwar’s explore may be seen in this political environment as a military necessity rather than an ASEAN retreat, a step to stop Myanmar from completely descending into a failed state. &nbsp,

Anwar, who chairs ASEAN, might have guessed that alienation may lead to more violence, deeper Chinese penetration, and unregulated criminal syndicates.

In this way, the conference was both a political risk and a humanitarian need, indicating that ASEAN, while inadequate and divided, is never completely paralyzed. In the face of military cruelty and local decay, it also highlighted the limitations of peaceful politics.

What comes next is crucial. Anwar has now strike a balance between this intense social inclusion push and the above-mentioned high level engagement. He must unite ASEAN to mobilize both to provide support and to start creating a peacefulness framework that includes all of Myanmar’s actors, not just those who own airports and capital cities.

In more ways than one way, the Anwar-Min Aung Hlaing conference was required to improve conditions for the distribution of humanitarian aid and demonstrate that ASEAN also has a signal in the face of severe human suffering. &nbsp,

The Tatmadaw and Min Aung Hlaing are presiding over Myanmar’s collapse at a time when Trump’s trade war and unilateralism are causing the conventional world attempt to collapse. &nbsp,

In a world like this, solitude is collusion. When done with discernment and discernment, proposal is the lesser evil.

Phar Kim Beng, PhD, is an assistant professor of ASEAN research at the Malaysian International Islamic University. He regularly writes about regionalalism, safety issues, and politics in Southeast Asia.

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The Chinese Century won’t mean what most expect – Asia Times

Some people are unsure whether the 21st century will turn out to be the Taiwanese Century because of the insultingly stupid economic self-harm and slow descent into authoritarianism. New York Times journalist Thomas Friedman&nbsp, says yes:

A Chinese business said,” There was a time when people came to America to see the future.” ” Then they come these”.…

President Trump is focused on what groups National trans athletes can competition on, and China is focused on transforming its companies with A. I. so it can outrace all our businesses. Trump’s” Liberation Day” approach includes doubling the amount of tariffs and gutting our nation’s academic institutions and workforce, which encourage innovation in the United States. China’s liberation strategy is to open more research colleges and double down on A. I. driven development …

[ W]h is the reason China’s production behemoth is today so powerful: it makes things cheaper, faster, better, smarter, and more filled with A. I. China places an emphasis on STEM schooling, including science, technology, engineering, and math. Each year, the nation produces some 3.5 million STEM graduates…]T] he best are world class, and there are a lot of them…

Over 550 Foreign places are connected by high-speed road that makes our Amtrak Acela look like the Pony Express.

Matt Yglesias also recently tweeted ( and then deleted ):” For the first time in my life, I really just think America may be cooked and it’s gonna be the Chinese century.”

Tyler Cowen&nbsp, has his questions, arguing that Chinese victory free-rides on a bunch of American-provided people products:

China’s advancements in the field of technology are amazing. BYD has the best and cheapest energy vehicles…Chinese AI, in the form of DeepSeek and Manus, has shocked many Europeans with its inventiveness…Yet American and most of all American identity is not over yet. These breakthroughs by China are true, but they rest on a foundation of American values and corporations more than it might seem at first …

The uncomfortable fact is that China’s size depends on British power and influence. The Chinese trade system, for example, requires a relatively free world buying order…If the world breaks down into deeply selfish protectionist trading blocs…where did the Chinese sell the rising output from their factories? …

The Chinese growth and stability type also requires relatively stable power supplies…If the Western alliance program collapses, who is to keep the Middle East somewhat stable…China scarcely seems up to that task…Another danger on the horizon is atomic proliferation…The more nuclear powers inhabit the world, the more China is hemmed in with its foreign policy ambitions…

There is much to rue in the first few months of Trump’s foreign and economic policy, but China is far from being able to take the baton. They are coming in second and doing a fantastic job of doing that because Americans still hold the lead despite our flaws.

Surprisingly, I think Friedman is more right than Tyler here. Over the past few years, I’ve written a few articles about this subject, and I believe that when we look back on the 21st century, we’ll probably refer to it as the Chinese Century, or at least the first half of it.

But the reason I say this is because what it means for a century to “belong” to a specific country will change from what it meant in the 20th — and often in ways that will not be very pleasant.

What does it mean for a century to “belong” to a country?

There is no one reason why the 20th century is frequently referred to as the” American century.” It’s just sort of a gestalt impression that the US was the most important country during that century. There were many dimensions where this was accurate:

  • The US had the largest economy in the world, and was the dominant manufacturing nation.
  • The US was militarily dominant, having the world’s most powerful military for almost the entire century.
  • The US set the standard for how a modern lifestyle should look in one of the richest and richest economies.
  • The US was a technological leader, producing by far the largest share of the scientific discoveries, breakthrough inventions, and commercial products that changed the world.
  • Through its output of movies, music, television, games, fashion, and ideas, the US was culturally predominate.
  • The US was geopolitically central, it played a key role in creating and sustaining various international institutions, created the world’s largest and most powerful network of alliances, and provided global public goods like freedom of the seas.
  • The US was historically central, playing the most important role in shaping many of the key global events of the 20th century — the World Wars, decolonization, the Cold War, and globalization.

In fact, I think that America’s unusual significance in nearly every area of the 20th century influenced our entire modern conception of recognizing countries as centuries. It’s hard to think of other historical examples where one country has had such broad-spectrum dominance.

The United Kingdom in the 19th century, which led to the Industrial Revolution and the creation of a globe-spanning empire, has come closest to being on par with this country. But even the UK was never as militarily or culturally dominant as America was in the 20th century.

As for older comparisons, only the Mongol Empire in the 13th and early 14th centuries really measures up. For one nation or empire to overshadow all the others, the globe was typically just too fragmented and technological advancement was too slow. Even the Roman Empire, the Abbasid Caliphate and the Tang Dynasty were more regional superpowers than global ones.

Anyway, the point is that there is no justification for us to assume that anyone will rule the 21st century, just like America did in the 20th. The historical norm is&nbsp, multipolarity, with different countries and empires having modest leads in various different dimensions for various periods of time.

Now, you can argue that globalization and continuous technological progress are both here to stay, meaning that future centuries are permanently more likely to have one dominant country. That’s probably true to some, some, and some extent, in my opinion. But as I’ll explain, I also think that the nature of both globalization and technological progress are changing in ways that will bias the 21st century toward multipolarity.

And some of these changes will result from the power transition from the US to China. Simply put, 20th-century America&nbsp, invented&nbsp, the game that it won, whereas China will use its power to invent ( and win ) a different sort of game.

China’s greatness will be different from America’s greatness

You might not be aware of this, but I believe that China and the US are very similar culturally rather than as two distinct” Eastern” and” Western” civilizations. 1&nbsp, But I’m not much of a cultural determinist, I think technology and institutions tend to matter more. Here, the similarities far outweigh the differences.

One area where China already far surpasses America is in&nbsp, state capacity. This is from&nbsp, a post I wrote back in 2023:

In his book,” China’s Economy: What Everyone Needs to Know,” ( which is excellent and highly recommended ), Arthur Kroeber presents a grand, unified theory of the nation’s economy, arguing that it can mobilize a lot of resources quickly and effectively but can’t use those resources in an optimally efficient way.

So in the case of say, building too many apartments, or&nbsp, failed Belt and Road projects, or wasteful&nbsp, corporate subsidies, the lack of efficiency can really bite. However, China’s resource-mobilizing approach can accomplish things on a scale no other country has ever accomplished before if we want to build the world’s largest high-speed rail system, create a world-leading car industry from scratch, or build a significant amount of green energy…

Remember a few years ago, when a bunch of people were&nbsp, sharing this map&nbsp, of a hypothetical U. S. high speed rail system? …Of course, the map and&nbsp, others like it&nbsp, were pure fantasy, in 15 years, California’s much-ballyhooed high speed rail project has &nbsp, managed to almost complete&nbsp, one small segment out in the middle of nowhere.

That’s the extent of the high-speed rail prowess of the US, but China’s authorities actually built the map! … In the last 15 years, China, starting from scratch, built a high-speed rail network&nbsp, almost as twice as long as all other high-speed rail networks in the world, combined. You can look these numbers up on Wikipedia, I’m not going to be exaggerating. As of last year, China had 42, 000 kilometers (km ) of high-speed railways in operation, with another 28, 000 km planned. That’s compared to just 2, 727 km in Japan, with its famous shinkansen.

Back in the middle of the 20th century, the US had much higher state capacity than it does today; it was able to surpass all other countries during World War 2, construct the interstate highway system, and so on. But modern Chinese state capacity vastly exceeds even America’s peak.

What other country could have maintained the kind of cruel, under-controlled Covid lockdowns that China managed to keep through 2022? Of course, past a certain point, these lockdowns were probably counterproductive, and they were certainly&nbsp, dystopian. But they were certainly a demonstration of the awesome power of the Chinese party-state.

China’s size is equal to that of the US, so if its economy grows, it will eventually become even more economically dominant. &nbsp, The UN predicts&nbsp, that by 2030, China will represent 45 % of all global manufacturing, higher than the US ever achieved, except for a brief moment after World War 2.

Keep in mind that as service industries expand, manufacturing accounts for only 5 % of China’s GDP. So unless China somehow turns out to be uniquely weak in the service sector, we can probably expect its overall economic dominance to be just as big as America’s was, or bigger.

Nor do I think the loss of US export markets will hurt China much. Tyler inquires,” Where will China sell the rising output from their factories?” The answer to that question is” China”. Contrary to popular belief, China has a less export-intensive economy than countries like France, Germany, or South Korea:

Source: &nbsp, World Bank

China had a brief period of export-oriented growth in the 2000s, but that’s basically over. China currently sells the majority of its products to Chinese consumers. Even the vaunted” Second China Shock” is mostly an overflow phenomenon, for example, China has become the world’s top car exporter, but the vast majority of the vehicles it makes are for domestic consumption.

Source: Brad Setser, &nbsp

In this sense, China is becoming more like the 20th-century US — a very large economy that has some prominent exports but is fundamentally domestically focused. Lack of demand from America is highly unlikely to cripple or even substantively reduce China’s economic progress, especially as the Chinese economy shifts to services.

No, China’s current real estate bust won’t likely reverse its economic growth in the same way that the Great Depression has permanently halted America’s.

With economic dominance will come military dominance. Due to nuclear proliferation and the shift in technology toward tactical defense ( basically, drones and missiles blow up vehicles and guns shoot down drones ), smaller nations of the world are now probably more able to withstand conquest and dominance by their larger neighbors.

But China’s size and manufacturing strength will allow it to overwhelm any nation that resists it and that threat will be enough to overawe most.

But the similarities probably stop there. China’s enormous size, smaller resource endowments, and inefficiently high level of government involvement in the economy are likely to prevent it from achieving the kind of world-beating living standards that America enjoyed ( and still enjoys, at least for the moment )…

China will be the world ‘s&nbsp, biggest&nbsp, economy, but only because it’s four times the size of America, it probably won’t be the&nbsp, richest. This implies that while the world’s citizens may admire China’s enormous train stations, soaring skyscrapers, and endless infrastructure, they may not be clamoring for the same quality of life as the Chinese.

In terms of technological leadership, China will certainly shine — but not in the same way America did. In a post last month, I argued that China overall is a highly innovative country, but that due to weak IP protections and other institutional factors, its innovations tend to be a blizzard of incremental improvements with few dramatic breakthroughs.

This may seem like a condemnation of China’s system to American ears, but to China’s leaders, this is probably just fine. If China simply appropriates or copies any new invention and scales it up more efficiently than anyone else can, it still comes out on top. And coming out on top is much more important to China’s leadership than advancing the overall development of human knowledge and wealth, in my opinion.

If weak IP protections discourage breakthrough discovery and invention all over the world, so what? That just reduces the risk that the rule of the Chinese Communist Party will be destabilized by the emergence of new techno-economic paradigms.

Some people might contend that AI will alter this formula. If people all over the world are able to create breakthrough innovations on their mobile phones using open-source AI algorithms, the cost of breakthroughs might come down so much that IP protections don’t really matter.

If so, the world will have reached the end of the technological era. But even in that scenario, China will likely be able to appropriate, scale, and commercialize all of those innovations. It will still be the technological leader, just not the kind the US was.

I anticipate that China will be more isolated and less powerful than America was in the cultural realm. Partly this is because of language — English is far more internationalized than Chinese will ever be ( though AI will erode this barrier significantly ).

But it’s also a result of social control. China is a deeply repressive nation, with universal surveillance, fine-grained media and speech control and ubiquitous censorship. That’s the kind of society where only anodyne, cautious artistry can flourish, except in tiny subcultural pockets too small for the government to worry about.

China’s leaders will likely continue to be paranoid about allowing in foreign ideas. They will continue to use the Great Firewall to “protect” Chinese people from the memes and ideas produced by the rest of the world.

China will only experience a weak and lag-related artistic and cultural ferment. It will be orphaned from the global discussion, and the country’s creativity will instead be channeled into the technological and commercial space.

So while I expect China to produce some hit video games and big-budget movies, I don’t think it will do much to push the boundaries of culture, despite the individual creativity of its people. Although TikTok and other Chinese tech products will have an impact on global culture, the main content will be produced elsewhere.

As for geopolitics, I think Tyler is certainly right that China will provide fewer&nbsp, global public goods &nbsp, than America did. It will be more focused on protecting its own trade than it will be on promoting international maritime freedom. Its military will make sure energy supplies reach Chinese shores, but probably won’t be interested in making energy globally abundant.

Research is another example, China’s government will make sure China dominates every frontier technology, but won’t care as much about expanding the frontier. Despite the sneers directed at America’s self-appointed role of “world police,” global security was yet another. It was more willing to fight regional conquerors than China has shown so far.

But I think Tyler overestimates the negative impact on China from the collapse of American public good provision. China’s military will be perfectly capable of doing it themselves if America stops defending Chinese shipping and energy supplies.

There is nothing unique about the US Navy, just like there was nothing unique about the British Navy. And in fact, since I predict China will guard only&nbsp, its own&nbsp, trade and energy supplies and leave other countries out to dry, the Chinese Navy may be able to accomplish its goals more cheaply than the US could.

In other words, I anticipate that China will be a much more self-sufficient power than America was in the late 20th century. It’ll be more like the US of Teddy Roosevelt’s time — mostly inwardly focused, but occasionally intervening in smaller countries ‘ affairs out of economic self-interest or desire for glory. International organizations and forums will either become irrelevant or serve as tools for China to control smaller nations.

In sum, I predict that this&nbsp, will&nbsp, be a” Chinese Century”. This may not hold as strongly in the second half, when&nbsp, China’s low fertility rates start to bite&nbsp, and India really starts hitting the top of its own trajectory.

However, I anticipate that China will be the world’s most powerful country in terms of both economic and technological terms for the next few decades, a historically unmatched marvel of size, resource mobilization, and innovation. America’s orgy of self-destruction will only hasten this future.

And yet, in my opinion, the Chinese Century will be disappointing in many ways, particularly for those who reside outside of China itself. A world where every invention gets grabbed and copied by Chinese state-sponsored companies is a world less filled with wonder ( though AI may help here ). A world where Chinese warships guard Chinese trade and leave other nations to fend for themselves is a more chaotic, less secure, less egalitarian world.

Other developing nations have less opportunity to grow, in a world where China produces everything for itself without relying on foreign manufacturers. A world where China tolerates regional conflicts and preserves peace only in its own backyard is a more dangerous, violent one. And a world in which the most important country keeps its culture a secret from everyone else is drab, less creative.

In other words, I’m more confident than Tyler about China’s ability to prosper, build, innovate and dominate in a world where America collapses in on itself. I think Thomas Friedman is right, and that unless something big changes, China is headed for at least half a century as the globe’s preeminent power.

A Chinese Century will, in many ways, be an improvement over the American Century, which makes me feel somewhat depressed. Perhaps the US efflorescence was a very rare and special thing, whose like we will not soon see again.

Notes:

In summary, America never had a single traditional culture, while China nearly destroyed it during the Maoist era. Both countries have substituted consumerism and technological progress for traditional cultural relationships.

Americans and Chinese people both dress sloppily, cut corners at work and drive to the mall in crocs and shorts, eat high-calorie greasy food and harbor grandiose, vague, usually unrealistic dreams of personal wealth and success. On the other hand, both maintain close, frequently contentious family relationships, with “amoral familism” being practiced in both locations.

Both have a passion for real estate. Both are large, diverse societies with significant social divisions, with the majority of them racial, while the majority are urban/rural and class divisions in China.

In addition, both” Han” and “white” are synthetic ethnicities created to unify large, diverse populations. Both Americans and Chinese people tend to have pride in the size and power of their countries.

I’ve made the casual observation that Chinese people adapt to American culture more quickly than other immigrant groups, and that Chinese people find me to be much more “foreign” than people from Europe, Canada, or Australia. Your mileage may vary, of course.

This article was originally published on Noah Smith’s Noahpinion&nbsp, Substack, and is republished with kind permission. Become a Noahopinion&nbsp, subscriber&nbsp, here.

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US should look before it leaps into South China Sea – Asia Times

Lately, Secretary of Defense Pete Hegseth traveled across the Pacific at a time that was questionable.

This unpleasant situation is brought on by the Signal conversation and the controversy that has engulfed both Washington and many of its allies in the Asia-Pacific who are concerned about their connection with the US. China conducted extensive defense exercises around Taiwan following Hegseth’s visit, highlighting the conflicts that characterize this area.

Hegseth traveled to Japan, Guam, and Hawaii, but his most notable prevent was the Philippines, a nation that has recently experienced considerable tensions with China.

That is especially true of disputed claims in the South China Sea, a region where there are growing military conflicts that cover a range of topics, including sea law, crowded water lanes, drilling for oil resources, fisheries, big new Taiwanese “reef bases,” and even the deployment of nuclear weapons.

The key to understanding this contentious concern is to understand how the South China Sea and Taiwan conflict intersect.

Given Beijing’s avowed objective to reach “unification,” Taiwan is the world’s most dangerous and dangerous powder keg. Less than 200 miles ( 322 kilometers ) from Taiwan is Luzon, one of the principal Philippine islands. In order for American action in a Chinese conquest of Taiwan to be conducted in the Philippines may be crucial.

I was made aware of the growing security ties between the Philippines and Taiwan during a recent excursion to Manila.

Some of his countrymen see Taiwan as a” proper buffer” against China, according to a planner. He explained that Taiwan managers were enthralled by the most current US military exercises in the Philippines, including Typhon and missiles.

Ferdinand Marcos, president of the Philippines, and Pete Hegseth, secretary of defense, US. US Defense Department

Another significant security thinker it explained to me that the Filipinos “generally hate China,” despite their own reservations regarding Washington’s “double-speak” regarding the subject of their bilateral security treaty.

Previous US secretary of state Mike Pompeo is regarded as a warrior in the Philippines for facilitating the Mutual Defense Treaty, which put the country’s relationship with the US under the spotlight.

A second Filipino security planner declared boldly that China would be defeated in the event of a defense conflict and that his nation could use the “Ukraine handbook.”

I made a quick point by pointing out that the second Trump administration’s approach to Pompeo was never applauded and that the “Ukraine playbook” of significant US support for great power bullying may no longer be viewed as a wise course of action.

I discovered Chinese strategists were in a likewise belligerent frame of mind when I traveled to China on the same Asia journey this winter.

According to a Chinese professional, Washington has” crossed the line” between Taiwan and the South China Sea. Another criticized the deterrent effect of the rollout of missiles, claiming Manila has “revisionist interests” and is “gambling.”

In line with such a reminder, a Chinese newspaper editorialized in early March that “Ukraine and Europe went from customers’ at the desk to having “fish” on the menu. Will Philippines be [the ] following dish…”?

However, the assessment has some reasoning, sadly for Manila. The Philippines, by contrast, is a legally US ally in a convention, whereas Ukraine is no. Additionally, Ukraine has a front that extends 2, 600 miles (4, 184 kilometers ) with Russia, while the Philippines has no land border with China.

However, both incidents illustrate how a smaller nation is confronting a reactionary superpower. Major internal turbulence has occurred in Manila and Kyiv. In Washington, there is a lot of disagreement regarding how to go about ensuring these two countries ‘ safety. Foreign conventional and firepower perhaps far outweigh that of Russia, which is also worth noting.

For the Philippines, Taiwan’s contact is both a blessing and a curse. In a scenario involving Taiwan, military organizers see an excellent staging area. So, it is not surprising that the Philippines has recently experienced a dramatic upsurge in US military causes.

The surge in tensions across the Strait is not accidental, at all. Not actually has the Pentagon’s increasing attention brought greater safety to Manila.

Hegseth promised the Philippines new support during his trip to Manila, including an agreement to conduct “advanced” diplomatic unique forces training operations on Batanes, the island nation’s northern island, which is located about halfway between Taiwan and Luzon island.

Similar actions may help Manila in balancing against Chinese force in accordance with the goals of the Trump administration’s so-called “prioritizers,” but this new action also comes with significant risks.

Hegseth should be aware that many” America First” supporters are reluctant to pour resources into a new international debate with the intention of turning it into a perpetual conflict. Additionally, the close connection between the Taiwan and Philippines concerns suggests that this condition may turn into something far worse.

Wonder tool: On June 27, 2024, US and Philippine forces in Laoag, Ilocos Norte, operate the Typhon range potential missile system. US Army Pacific pictures

Ferdinand Marcos Jr., the president of the Philippines, set up a presentation test of the touted HIMARS system in April 2023 to demonstrate its ability to fall Chinese ships. In six out of six tests of the weapons against a dispatch target, the system failed.

This incident suggests that a few “wonder weaponry” are unlikely to resolve the imbalance’s root causes, which necessitates diplomatic diplomacy and tactful speech in favor of mainly symbolic weapons.

Washington has “look before it leaps” and adopt a much more prudent method before blundering into the pot of the South China Sea. The leaders of Pentagon should also keep in mind that Trump is less interested in World War III over the shores of Crimea than he is in World War III.

Director of Asia Engagement at Defense Priorities is Herman Goldstein.

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Signs not good for US-Iran nuke deal badly needed for stability – Asia Times

Older Egyptian and American officials will join forces for the next week in a row to discuss the Persian nuclear programme. The most recent round of conversations has begun in Oman on April 12; the first round was held there on April 12.

However, recent claims from senior Iranian officers, including those that differ on the location of the talks, suggest that quick political victories might not be possible.

Donald Trump’s attitude toward Iran has been understandably hostile. The Trump administration for the first time withdrew from the 2015 atomic agreement and put the plan of “maximum force” on Iran. Trump has reintroduced this scheme of greatest force since his return to the Oval Office.

Steve Witkoff, the US special envoy to the Middle East, stated in a post on X that” Iran may quit and remove its nuclear advancement and weaponization program.” Additionally, he demanded that any weapons that were stored in the Islamic Republic be checked.

Iranian officials and Abbas Araghchi, the foreign secretary, have vehemently rejected these US requirements, with Iran’s officials claiming that the missile system is not up for discussion.

Tehran wants a settlement.

Iran is undoubtedly looking for a bargain, or perhaps needs one. Restrictions that have severely damaged the government’s middle school over the past ten years have hit it hard.

Israel’s military actions against Iran and its supporters over the past year have eroded the Islamic Republic’s intellectual and military strength and the wider” plane of weight.” Iran’s weapons have even greater significance as a deterrent as the strengthening of many of its friends.

The Trump administration’s powerful position leaves little room for manoeuvre. It raises the possibility of more enticing hardline groups in Iran, who may be less inclined to speak out politely. However, any hostile language from Iranian voices could add more to an already obscene situation.

The Islamic Republic also experiences a number of severe domestic stresses, including those portrayed in the Woman, Life, Freedom activity. The self-declared Crown Prince Reza Pahlavi, the Shah’s child, who was ousted in 1979, is also facing an increasingly vocal criticism from overseas.

Iran may need a deal, but it cannot give up, especially given the recent events. Nor ought it.

US evaluates its plan

Hawks in the US, Israel, and other countries have, of course, applauded the Trump administration’s position. Israeli Prime Minister Benjamin Netanyahu’s steps are still influenced by worries about an Iranian nuclear programme, despite recent reports that Trump vetoed Jewish strikes on Iranian targets in favor of further negotiations.

The situation is different now than it was when the Gulf state would have celebrated a hard stance on Iran. Saudi Arabia, Iran’s long-standing adversary, has put a stop to decades of enmity in the hope of a more prosperous future together.

Saudi Arabia and Iran agreed to restore relationships, reopen offices, and engage in a number of planned military exercises under a 2023 deal mediated by China. Regional security is crucial to the realization of Saudi Arabia’s ambitious Vision2030 program, which greatly relies on global investor confidence and trust, and in particular its crown prince and de facto ruler Mohammed bin Salman.

In response, the kingdom began a rational shift in its local affairs, initiating a political reunification process that surprised many observers. Even though the continuing loss of Gaza has slowed these efforts, at least for the moment, Riyadh has even taken steps toward normalization with Israel.

Jewish strikes on targets in Syria continue at the same time as the nuclear agreements are taking place. The social environment of Syria has been dramatically altered by the Assad regime’s collapse at the end of 2024 and the support for Russia, one of its long-standing supporters.

Moscow has taken a cautious stance despite the country’s previous president, Bashar al-Assad, who has found shelter in Russia, out of concern that Syria’s fresh regime will attack and threaten its effectively crucial military installations along the Mediterranean coast. Members of groups that the Assad regime had formerly supported, particularly the Alawi societies, have eluded the Russian naval base in Latakia in search of safety.

However, thousands of others have been killed as a result of the rise in crime as the forces of the new government, led by Ahmad al-Shara, attempt to eradicate all remnants of the Assad government. This is a series of events that resemble what happened in Iraq 20 years ago when the “de-Ba’athification” process attempted to remove all vestiges of Saddam Hussein’s government from public career.

local get ambiguous

The situation in the entire region is perilous, and the world powers ‘ actions are still having an impact. The threat of Taiwanese influence in the region grows as Washington presses Tehran and Moscow.

Unfortunately, Trump’s tariffs on China does drive Beijing further into the Middle East as it tries to make the most of the options that are present. The Middle East is securely positioned within China’s corporate interests thanks to its Belt and Road Initiative. This is likely to give the conflict between Washington and Beijing a new lease of life.

The people of the Middle East are still paying the heaviest rate all the while. A combination of rising food prices, uncertainty, fears of a regional turmoil, and precarious political conditions is what is creating the perfect storm that makes everyday life more difficult and challenging.

At Lancaster University, Simon Mabon is a teacher of international relations.

The Conversation has republished this essay under a Creative Commons license. Read the text of the content.

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Trade war has caught Wall Street between a rock and a hard place – Asia Times

The trade war between China and the US has spiraled into uncharted territory. On April 10, the Trump administration imposed a tariff of 125% on all Chinese imports. China called the actions unfair and responded with similar measures.

Within the broader debate around unravelling economic ties between the US and China, where economic interdependence has increasingly been viewed as a threat to US national security, this escalation raises questions about whether global finance is also reducing its presence in China.

After all, the risks of financial connectivity with China have been discussed prominently by US policymakers in recent years. And many financial analysts have spent much of the past year discussing whether China has become “uninvestable” due to rising geopolitical tensions.

However, as I show in a recently published study, most global financial firms have continued to expand their presence in Chinese markets over the last decade, even as tensions have intensified.

Crucially, they have done so on China’s terms, operating within a system that prioritizes government oversight and policy goals over liberal market norms. This pragmatic accommodation is quietly reshaping the global financial order.

China’s capital markets, which have historically been sealed off from the rest of the world, have been opening up in recent decades. This has prompted global financial firms to expand their footprint in China.

Investment banks such as Goldman Sachs and JP Morgan have taken full ownership of local joint ventures. And asset managers like BlackRock or Invesco have established fund management operations on the Chinese mainland.

Yet China has not liberalized in the way many in the west expected. Rather than conforming to global norms of open, lightly regulated markets, China’s financial system remains largely guided by the state.

Markets there operate within a framework shaped by the policy priorities of the central government, capital controls remain in place, and foreign firms are expected to play by a different set of rules than they would in New York or London.

Foreign investors have been allowed to buy into mainland markets, but through infrastructure that limits capital outflows and preserves regulatory oversight.

Rather than adapting China to the global financial order, Wall Street has accommodated China’s distinct model. The motivation behind this is clear: China is simply too big to ignore.

Take China’s pension system as an example. Whereas pension assets in the US amount to 136.2% of GDP in 2019, in China these only amounted to 1.6%. The growth potential in this market is enormous, representing a trillion-dollar opportunity for global firms.

Consequently, index providers such as MSCI, FTSE Russell, and S&P Dow Jones – key gatekeepers of global investment – have included Chinese stocks and bonds in major benchmark indices.

These decisions, taken between 2017 and 2020, effectively declared Chinese markets “investment grade” for institutional investors around the world. This has helped legitimize China’s market model within the architecture of global finance.

America strikes back

In recent years, Washington has sought to curtail US financial exposure to China through a growing set of measures. These include investment restrictions, entity blacklists, and forced delisting for Chinese firms on US stock exchanges. Such actions signal a broader effort to use finance as a tool of strategic leverage.

The moves have had some effect. Some US institutional investors and pension funds have declared China “uninvestable” and are reducing their exposure. American investments in China have roughly halved since their US$1.4 trillion peak in 2020.

But attributing this solely to geopolitical pressure overlooks another key factor: China’s underwhelming market performance. A protracted property crisis, a government crackdown on tech companies and a weak post-pandemic economic recovery have made Chinese markets less attractive to investors in purely financial terms.

More strategically oriented investors from Asia, Europe and the Middle East have invested more into Chinese markets, filling gaps left by US investors. Sovereign wealth funds from the Middle East, especially, have engaged in more long-term investments as part of broader efforts to strengthen economic cooperation with China.

And at the same time, many Western financial firms have doubled down on their presence in China, expanding their onshore footprint. Since 2020, institutions such as JP Morgan, Goldman Sachs and BlackRock have opened new offices, increased their staff, acquired new licences and bought out their joint venture partners to operate independently as investment banks, asset managers or futures brokers.

It has become more difficult to invest foreign capital in China. But Western financial firms are positioning themselves to tap into China’s huge domestic capital pools and capture its long-term growth opportunities – even as they tread carefully around geopolitical sensitivities.

Fragmenting financial order

It is too early to predict the long-term effects of the current geopolitical tensions. But Wall Street is trying to placate both sides. On the one hand, it is adapting to capital markets with Chinese characteristics. And on the other, it is trying not to antagonize an increasingly interventionist America.

However, while holding its breath amid further escalation and having scaled back some of its activities, Wall Street has not left China. It is instead learning how to work within the constraints of a system shaped by a different set of priorities.

This does not necessarily signal a new global consensus. But it does suggest that the liberal financial order, once defined by Anglo-American norms, is becoming more pluralistic. China’s rise is showing that alternative models – in which the state retains a strong hand in markets – can coexist with, and even shape, global finance.

As tensions between the US and China continue to rise, financial firms are learning to navigate a world in which existing relationships between states and markets are being reconfigured. This process may well define the future of global finance.

Johannes Petry is CSGR research fellow at the University of Warwick.

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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South Korea’s strategic autonomy and India – Asia Times

In today’s rapidly evolving international landscape, the concept of a “pivotal state” is gaining renewed attention. As the global order transitions into a phase of intensified great-power rivalry, particularly between the United States and China, countries that can maintain strategic autonomy while influencing regional and global power dynamics are emerging as vital players.

South Korea has, with its advanced economy, vibrant democracy, strategic geographic position, and growing soft power, all the essential ingredients to play such a role. Yet, under the Yoon Suk-yeol administration, Korea has drifted from this potential, becoming overly reliant on one side of the geopolitical spectrum.

Now, however, with the political tide turning and the possibility of Lee Jae-myung ascending to the presidency, Korea has a real opportunity to reset its course and finally step into the role of a true pivotal state.

A pivotal state is not merely a middle power, but a country that actively shapes the balance in great-power politics. Unlike satellite states that gravitate around dominant powers, a pivotal state maintains a strategic center of gravity of its own. It responds flexibly to shifting international dynamics, refuses to become a vassal of larger powers and uses diplomacy and autonomy to enhance its national interests.

Examples of such countries include India and Brazil – states that pursue independent foreign policies and often play both sides when necessary, leveraging their positions for national gain without being fully subsumed into any alliance system. These nations do not just survive the global power competition – they shape it.

Missed opportunity under Yoon

When President Yoon Suk-yeol came to power in 2022, he proclaimed Korea’s ambition to become a “global pivotal state.” At face value, this was a welcome shift from past administrations that often wavered between great powers. Yoon promised bold, principled diplomacy that would elevate Korea’s standing on the global stage.

However, in execution, this vision became more rhetoric than reality. Instead of striking a balance between competing powers, the Yoon administration veered sharply toward unconditional alignment with the United States.

It enthusiastically embraced the US Indo-Pacific Strategy, tightened security and intelligence cooperation with Washington and Tokyo, and made highly visible moves such as hosting extended deterrence dialogues and participating in anti-China rhetoric.

This foreign policy posture, while arguably addressing immediate security concerns, came at the expense of Korea’s strategic autonomy. Moreover, by choosing clear alignment in a world that is increasingly multipolar, Korea forfeited its ability to mediate, influence or act as a bridge between diverging global interests. In doing so, it reduced itself from a potential rule-shaper to a rule-follower.

It alienated not only China – its largest trading partner – but also developing nations that value non-alignment and autonomy. The Yoon administration’s vision of a pivotal Korea turned out to be a paradox: how can a nation claim the mantle of a global pivot while acting as a strategic extension of another great power?

Why now is the time

There are several reasons why now is the right moment for South Korea to have a true strategic autonomy. The global power structure is fragmenting. The Cold War’s rigid bipolarity is long gone. Even the current US–China rivalry is increasingly complicated by the rise of influential players like India, Russia, Turkey, and Brazil.

This emerging multipolarity offers middle powers like Korea a rare and valuable space to maneuver – provided they have the strategic vision and political will to seize it. At the same time, cooperation among great powers is proving unstable and unpredictable.

The shifting dynamics of the war in Ukraine and the behind-the-scenes bargaining between the US and China reveal a hard truth: Smaller nations can be easily sidelined or sacrificed in the name of strategic compromise. South Korea must not allow itself to remain a passive observer while others decide its fate.

Meanwhile, the world’s attention is increasingly focused on Asia. As the geopolitical center of gravity shifts toward the Indo-Pacific, Korea finds itself at a unique crossroads. But to wield influence, it must move beyond the role of a subordinate within a US-led axis and stand as a confident, self-defining actor. India’s example proves this is not only possible – it is necessary.

A balanced approach under Lee Jae-myung?

As South Korea heads toward another electoral shift, the political winds are changing. The opposition Democratic Party, led by Lee Jae-myung, is gaining momentum. Should Lee win the presidency, Korea may finally find the political leadership necessary to realize the true meaning of a pivotal state.

Lee’s foreign policy signals indicate a desire to rebalance Korea’s diplomacy – not by abandoning its alliance with the United States, but by supplementing it with greater strategic flexibility, economic pragmatism and a non-ideological approach to China and the Global South.

In his public speeches, Lee has emphasized cooperation over confrontation, economic sovereignty, and diplomatic pragmatism – principles that align well with the idea of a pivotal state.

Rather than choosing between Washington and Beijing, a Lee-led administration would likely pursue a “both-and” strategy. This includes maintaining the security alliance with the US while re-engaging China diplomatically and economically, expanding relations with ASEAN, Middle Eastern countries, and Eurasian nations and strengthening South Korea’s voice in multilateral forums such as the G20, APEC, BRICS+ and the Shanghai Cooperation Organization (SCO).

Lee’s foreign policy is also expected to prioritize technological sovereignty, green diplomacy, and economic diversification – all key areas where Korea can assert its influence globally without taking sides. Under such a strategy, Korea could begin to function as a connector, not just a consumer, of international norms.

Learning from India

India presents a timely and practical example as South Korea seeks to redefine its role in the global order. While maintaining strong strategic ties with the United States, India has consistently upheld its strategic autonomy, refusing to be drawn into any single power bloc.

Instead, it pursues a pragmatic, issue-based diplomacy rooted in national interest and guided by values – without becoming subordinate to any major power.

South Korea can draw important lessons from India’s approach. India’s “Non-Alignment 2.0” strategy allows it to engage deeply with the US while simultaneously participating in multilateral platforms like BRICS, the Shanghai Cooperation Organization (SCO) and the G20 alongside countries such as China and Russia.

This flexible, multi-vector diplomacy enables India to navigate a complex geopolitical landscape without being locked into rigid alliances. Korea, too, can adopt such a strategy to avoid the risks of bloc-based alignment and preserve its strategic space.

India’s growing engagement with the Global South – particularly in Africa, Latin America and Southeast Asia – has significantly boosted its international standing. Korea can work with India to develop closer ties with these regions, allowing it to diversify its foreign policy engagements without undermining its existing relationships with rising power blocs.

Both countries can co-invest in development projects, technology transfer, and sustainable infrastructure, thereby expanding Korea’s global footprint and building partnerships that go beyond the traditional US–China binary.

Beyond the pursuit of strategic autonomy, India’s focus on technological and trade sovereignty offers another valuable blueprint for South Korea to consider in strengthening its position as a sovereign and globally autonomous power.

In critical sectors such as semiconductors, clean energy, and digital infrastructure, India has launched initiatives aimed at reducing external dependency and building resilient domestic capabilities. South Korea, facing its own challenges due to overdependence on select global supply chains, can benefit by following a similar path – strengthening self-reliance while remaining globally competitive.

By aligning more closely with India and embracing a broader, multidimensional strategic vision, South Korea can overcome its current limitations and emerge as a more independent, respected actor in both regional and global affairs. Thus, through strategic learning and enhanced cooperation with India in both economic and geopolitical domains, South Korea can strengthen its capacity to emerge as a genuinely global pivotal state.

This growing partnership is not about choosing sides, but about standing together – confidently and collaboratively. Through deeper cooperation and shared leadership, Korea and India can shape a more inclusive, balanced, and multipolar international order, reinforcing one another’s journey toward genuine strategic autonomy.

By following India’s lead, South Korea can reclaim a more self-directed, balanced foreign policy – one that protects its national interests while contributing meaningfully to a more stable world.

The strategic identity Korea urgently needs

To become a true pivotal state and have strategic autonomy , Korea must craft a foreign policy identity grounded in self-determination rather than alignment. This doesn’t mean taking an anti-American or pro-Chinese stance – it means being unequivocally pro-Korea.

At the core of this identity lies the principle of strategic autonomy: South Korea makes decisions based on its own national interests, not according to the expectations or pressures of its allies.

Such an approach requires balanced engagement, meaning South Korea should actively pursue diplomacy with all major powers – especially those in Asia and the Global South – while also playing a constructive role in multilateral forums. At the same time, Korea’s  new diplomacy must be guided by value-based pragmatism. This involves upholding principles like democracy, peace, and the rule of law, while also acknowledging the realities of a diverse international system.

Korea today stands at a historical crossroads. The failures of the Yoon administration to fulfill the promise of a global pivotal state have shown what happens when rhetoric is not matched by strategic independence. But this failure also provides a valuable lesson – that true leadership on the global stage requires courage, balance, and the will to chart one’s own path.

With Lee Jae-myung poised as a serious contender for Korea’s next presidency, the country may have its first real opportunity in decades to shift from alignment to autonomy, from reactive diplomacy to strategic leadership.

The world does not need another follower in the US-China rivalry. It needs a Korea that stands firm, speaks clearly, and acts wisely – a Korea that can finally become the true pivotal state it was always destined to be.

Korea’s moment to reclaim its strategic autonomy has finally arrived – and by looking to India as both a partner and a model, it may discover its clearest path forward and its closest ally in these challenging times.

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A psychopath wouldn’t hesitate to trigger global financial crisis – Asia Times

Would you want a psychopath looking after your pension? Or what about your shares? In a recent talk at the Cambridge Festival of Science, I spoke about the latest research relating to a psychopath’s love of money, greed for power and willingness to harm other people financially for personal gain.

Since I began researching corporate psychopaths and the global financial crisis, the idea of the financial psychopath, an employee in the financial sector acting ruthlessly, recklessly, greedily and selfishly with other people’s money, has gained traction.

The theory won support because psychopaths are more commonly found in financial services than in other sectors. It has even been argued that up to 10% of employees in financial services could be psychopathic. That is to say they have no empathy, care for other people, conscience or regrets for any damage they do.

These traits make them ruthless in pursuit of their own agendas and entirely focused on self-promotion and self-advancement.

But my ongoing research goes even further. It has found that psychopaths are willing to knowingly cause financial harm to the entire global community in order to receive a financial bonus for themselves. Personal greed outweighs the immense social and community costs of implementing that greed.

This aligns with earlier perceptions of some captains of finance or leading politicians as psychopaths. Previous research found that their selfish philosophy of life and their trivializing of other people free them from the restraints of being evenhanded, truthful or generous.

This new research also shows that a majority of psychopaths would even be willing to cause a global financial crisis – if they personally would profit from, for example, falling stock prices. This willingness holds true even when they could be personally identified as being the source of the crisis. Only a tiny minority of non-psychopaths would be willing to do this.

Race to the top

Financial insiders appear to agree with the assumption that psychopaths have always been prevalent in the sector. Many psychologists and other management commentators have come to the same conclusion.

Researchers have also found that interpersonal-affective psychopathic traits – such as deceitfulness, superficial charm and a lack of remorse – were associated with success in the finance sector.

Employees at financial institutions in New York scored significantly higher on these traits than people in the wider community. They also had significantly lower levels of emotional intelligence (as would be expected of psychopaths).

What’s more, having psychopathic traits has also been linked to higher annual incomes – as well as a higher rank within the corporation.

In other words, it looks like the more psychopathic an employee is, the farther up the corporate finance ladder they will go. This corresponds with findings that show there are more psychopaths at the tops of organizations than at the bottom.

Creating destruction

This is not to say that personal success in climbing the corporate ladder equates to professional success when someone reaches the top job. Quite the opposite. In fact, my research has shown that psychopathic leadership is associated with organizational destruction.

This includes a greater propensity to take risks with other people’s money, a greater willingness to gamble with someone else’s money and lower returns for shareholders.

In one study over a ten-year period, psychopathic fund managers were found to generate annual returns that were 30% lower than their less psychopathic peers.

The research team concluded that among elite financial investors, psychopathy and its appearance of personal dominance and competence may enable people to rise to the top of their profession. But this does not translate into improved financial performance at the organizational level, where the presence of the psychopathic is actually counterproductive.

Fraud has always been associated with the psychopathic – so much so that in one study 69% of auditors believed they had encountered corporate psychopaths in relation to their investigations.

Years ago, one bank reportedly used a psychopathy measure to recruit staff. But I would advise against hiring people who score very highly, because they are totally concerned with personal success. They are not bothered about long-term organizational growth or sustainability. As such, decisions will be made to suit the psychopathic worker and not the organization.

For example, new hires would be likely to be people who can help the psychopath achieve their personal aims and objectives rather than aid the company. Anyone astute enough to potentially be a challenge to the psychopathic employee would not be hired in the first place.

Without exception, psychopathic people love money and they are more motivated by it than other people are.

Unlike the rest of the population, psychopaths are uninterested in higher values, such as close emotional connections with family and friends, and much more focused on money and materialism. Seen through this lens the appeal, to people with these traits, of the corporate banking sector and the salaries and bonuses it offers soon becomes clear.

Clive Roland Boddy is deputy head of the School of Management, Anglia Ruskin University.

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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