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An embargo like this was inevitable. I'm sure it will not be the last time they reserve a resource for Chinese businesses. Commentators in the west sometimes fo
by gamble 16y ago
An embargo like this was inevitable. I'm sure it will not be the last time they reserve a resource for Chinese businesses. Commentators in the west sometimes forget that China is not like western countries; its political elite do not buy into neoliberal ideas and are not easily corrupted to promote American business interests, like in so many of America's trading partners.
Simply put, it makes no sense for Chinese representatives to scour the globe snapping up resources if they don't intend to reserve them for Chinese use at below-market rates.
- bd_at_rivenhill 16y agoOne problem with this line of reasoning is that an embargo will cause a trade war, which will reduce demand for Chinese manufactured goods. The end result would be unemployment and social instability, which is the most important thing to be avoided as far as the Party is concerned.
- gamble 16y agoMaybe. So far, China has been able to get away with some stunningly protectionist policies. Keep in mind that there is a significant mercantilist/nationalist faction in the Chinese government that sees the US as a declining power with little leverage over China and a history of accepting one-sided trade with Asian states. They are also playing the long game on this one. It may be enough for now simply to own the resources, and only exploit their control on specific issues like the recent spat with Japan and American pressure on their currency.
- loewenskind 16y agoChina's advantage is that they can sell incredibly cheap products in vast quantities. The west has become utterly dependent on them. What will they do if China pisses them off? They're not going to manufacture at home.