One of the most important speeches of the decade may have been delivered by Chinese leader Xi Jinping recently before the Communist Party Congress. He assured the crowd—and the world—that his zero-Covid policy, which stunts economic growth, is in place and that Beijing is more committed than ever to reuniting Taiwan with China, quietly if possible and forcibly if necessary.
Deep geopolitical divisions and severe economic instability are the norms right now, as exemplified by Xi’s statements. There is no doubt that the pre-Covid world is not returning. Instead, a confluence of underlying causes has overturned the prior order of things and brought about a period of extreme disarray.
1. Russia invading Ukraine
In addition to taking Kyiv slowly rather than swiftly as many western analysts and the Kremlin had anticipated, Russia now appears increasingly likely to lose the conflict despite the mobilization of reserve forces and nuclear saber-rattling.
2. US-China relations
Following then-US President Richard Nixon’s historic visit to China in 1972, the US tried to improve relations with Beijing through greater economic integration for four decades. In reaction to Xi Jinping’s assertive posture at home and internationally, things started to alter during Barack Obama’s second term before exploding with Donald Trump’s trade war.
3. Populism
Being one of the few issues on which the fiercely divided US voters can agree, China is one reason why US policy toward Beijing is unlikely to change. Only 36% of Americans had a negative opinion of China in 2011, whereas 51% did. By 2022, an astounding 82% of opinions were negative, which was only surpassed by Sweden, Japan, and Australia.
4. Inflation
Before inflation reached levels not seen in forty years, there was a great deal of unhappiness with the current political-economic system. The US Federal Reserve and European Central Bank acknowledge that by raising benchmark interest rates in response, they may bring about a recession. The majority of observers now anticipate one in 2023 on both sides of the Atlantic.
News Mania Desk
