The G7 met over the weekend and the supposedly richest economies in the world agreed to do what it takes to help the global economy recover. They were specifically against protectionism. The G7 nations consist of the US, Britain, Canada, Germany, France, Italy, and Japan. We can all sincerely hope these 7 nations mean it.
Even though at least one of those nations is notorious for protectionism.
And even though all 7 of those nations would most likely sell out the other 6 for their own recovery. Pretty words don’t always make actual policy.
But the G7 is inherently missing some things. Like countries. What about emerging economies, most notably India? America talks a lot about creating jobs but not very much about how many jobs have left our shores, especially to those countries where English is prevalent. I’m not sure what, if anything, America can do about that but such job shifting surely affects our economy, and when Obama or anyone else says that higher technology jobs can’t leave our shores, I’d say that 100 years ago manufacturers probably couldn’t conceive of a time when those jobs would leave.
Worse, there’s at least one country that’s not an emerging economy but isn’t part of the G7. China is a force to be reckoned with in every possible way. It has a labor force the size of which the world has never seen, and that costs very little. It either has no respect for or no desire to enforce international copyright laws. It has no real problem sending America goods laden with lead or with outright poison (although America also needs to clean up its own act on not shipping food with poison, like peanuts and salmonella). The country has been buying up American dollars and can help hurt our economy as they desire by dumping them back on to the market.
None of this is about the people of China, but the government of China has a definite low-level hostility toward America, and their policies definitely reflect that. Even their better policies reflect indifference. And America seems to abide it because Americans want 25 dollar sneakers at Walmart.
Its also possible that China has its own problems. They are having to carefully manage the emergence and growth of the middle class in China and the introduction of more capitalism because to little and those not enriched will revolt, and to much and the new middle will seek to become the new ruling class. But China has existed as a powerful nation for millennia, and even the switch to “communism” didn’t change as much as one might think. I don’t think we can hope that our example will change things. If indeed America or any of the other G7 nations can be considered examples.
Until something is done about the China problem, China will remain a problem.
JC Economy, Foreign Relations China, diplomacy, finance, G7