Top Menu

Barclays Forex Scandal

The Tyranny of Monopoly-Finance Capital

A Chinese Perspective

Since the 1980s, economic growth in the core capitalist countries has been driven by an enormous expansion of financial capital, accompanied by steady deindustrialization. In recent years, the monopoly power of this financial capital has displayed increasingly tyrannical characteristics: it depends for its continued growth on ever-increasing indebtedness and dependence in developing nations, widening the divide between rich and poor and ultimately fostering state violence that serves to suppress popular resistance.… [Today,] military and monetary strength work together to profit from inequality and instability in emerging economies. | more…

One Belt, One Road Map

One Belt, One Road

China's Strategy for a New Global Financial Order

In late 2013, Chinese premier Xi Jinping announced a pair of new development and trade initiatives for China and the surrounding region: the “Silk Road Economic Belt” and the “Twenty-First-Century Maritime Silk Road,” together known as One Belt, One Road (OBOR). Along with the Asian Infrastructure Investment Bank (AIIB), the OBOR policies represent an ambitious spatial expansion of Chinese state capitalism, driven by an excess of industrial production capacity, as well as by emerging financial capital interests. The Chinese government has publicly stressed the lessons of the 1930s overcapacity crisis in the West that precipitated the Second World War, and promoted these new initiatives in the name of “peaceful development.” Nevertheless, the turn to OBOR suggests a regional scenario broadly similar to that in Europe between the end of the nineteenth century and the years before the First World War, when strong nations jostled one another for industrial and military dominance. | more…

What is the TPP?

The Rhetoric and Reality of the Trans-Pacific Partnership

A View from China

Since announcing its foreign policy “pivot to Asia” shortly after the election of Barack Obama, the United States has made extensive use of its institutional and discursive power to encourage denationalization among developing countries whose economies chiefly rely on manufacturing and trade—part of its global strategic goal of expanding the hegemony of finance capital at the lowest possible cost. The development of the Trans-Pacific Partnership (TTP) is a case in point. This article analyzes the TPP’s strategy in targeting China, pointing out that the TPP is a battle for the terms of economic development and discourse in the twenty-first century, as well as an illustration of the ideology of technocracy and soft power. Lastly, we criticize the TPP’s erosion of economic sovereignty, which would effectively relegate the economies of developing countries to a form of semi-colonial extraterritoriality. | more…

Ecological Civilization, Indigenous Culture, and Rural Reconstruction in China

The governments of almost all developing countries are facing the long-term twin problems of capital shortages and high fiscal debts, resulting from their attempts to modernize the state forms and economic and financial relations left by colonialism or copied from western political culture. Whether they claimed to be of the left or the right ideologically, they almost invariably undertook policies to attract foreign investment and encourage domestic private investors to join the global industrialization competition during the twentieth century…. Continental China, the biggest developing country, with the largest population (but also with significant natural resource constraints) has close to 20 percent of the world’s population, but only 9 percent of its arable land and a mere 6 percent of its fresh water. Over the centuries, China had its share of drought- or flood-induced famines. But if not for a 6,000-year history of irrigated agriculture, with its related “village rationality” based on traditional indigenous knowledge—which internalizes risks by its multifunctional rural cultures of sustainable self-reliance—China would have been a land of perpetual hunger. | more…