Good riddance to Chinese triumphalism as economic disaster looms

The newfound alliance between India and China, and Saudi Arabia joining forces with Iran, unequivocally highlights the sheer foolishness of the expanded Brics group of emerging economies. It is truly perplexing to witness these unlikely partnerships amidst ongoing conflicts between the respective nations.

Despite claims that the Brics group stands against the supposed dominance of the G7 in the global economy, its inclusion criteria seem illogical. How is it possible that Egypt has been invited to join, while Nigeria and Indonesia, which possess significantly more significant economies, have been seemingly disregarded?

If the trade initiative is nothing more than a disguise for Chinese influence in emerging economies, then it would be wise for participating countries to be extremely cautious about it. This is especially true considering that it appears to legitimize Vladimir Putin's unlawful invasion of Ukraine. By joining this initiative, nations are essentially expressing their indifference or even support for such actions.

However, it is the possibility of China's acquisition that should concern other regions the most. Over the past four and a half decades, China has made significant advancements in its economy since it began integrating with the global community. This remarkable growth is undeniable and deserves recognition and replication.

Despite the advantages experienced by wealthy nations, the positive outcomes are not readily apparent. In the case of Western countries, China has disguised its true intentions and is seen as a deceptive force. Additionally, even developing nations have not experienced smooth and favorable interactions with China.

We must exercise caution in this matter, as free trade between countries is generally beneficial, following the principle of comparative advantage proposed by Ricardo. It enables nations to focus on their strengths and expertise while acquiring goods and services from others for which they may not excel.

However, it is important to have fair trade alongside free trade. Western countries are starting to realize that security concerns will become a significant issue if they heavily rely on foreign entities for crucial economic resources.

China has cunningly succeeded in obtaining complete control over important sectors of production and resources, and ambitiously seeks to acquire even more.

The Western world's vulnerability was fully revealed during the disruptions in the flow of goods caused by the pandemic. It became glaringly obvious that we no longer produce a significant portion of the essential items required to sustain a modern economy.

Let me clarify. It is not possible for any economy to rely solely on itself. This approach is completely nonsensical in today's world, and if widely adopted to its logical end, would only result in unnecessary redundancies, inefficiencies, reciprocal protectionism, and escalating international tensions.

We should not be envious of China's economic advancement. Instead, we should admire and commend it as a remarkable achievement of our time, as it has successfully elevated the living standards of countless individuals who were previously living in poverty.

However, it is not only the increasing competition between powerful nations or the negative impact of China on job opportunities and technological advancements in the West that we should worry about. We should also take into consideration the arrogance and boasting exhibited by China.

The belief in China's superiority emerged around 15 years ago during the economic crisis. At that time, Wang Qishan, who served as China's finance minister, expressed to his American counterpart, Hank Paulson, that the tables had turned. He stated, "In the past, I learned from you and considered you my teacher. However, now I find myself in a position of authority, and when evaluating your system, Hank, we question whether we should continue to learn from you."

Mr. Wang's subtly astute remark quickly transformed under President Xi Jinping into - and please note that I am providing a satirical portrayal here - "we absolutely won't take lessons from you anymore, as it's evidently clear that our system of governing and handling the economy is much better than yours."

The apparent stability and organization of the Chinese economic advancement would later be frequently compared to the perceived disorder and decline of the Western world.

In the initial stages of the COVID-19 outbreak, this notion became widely accepted, as China became the epitome of how governments ought to handle a potentially lethal contagion. We all took cues from China, with the roles of teacher and student unequivocally reversed.

China became the epitome of effectively tackling a pandemic by implementing a rigorous lockdown strategy, which was better suited for an autocratic regime rather than a democracy that values personal liberties. Alongside this, the nation extensively conducted testing which played a crucial role in curbing the spread of the disease. President Xi proudly showcased these measures as further proof of China's supremacy.

In the United Kingdom, it appears that we experienced the most unfavorable circumstances. We underwent a government-enforced lockdown, similar to China, but unfortunately, it resulted in significant economic and social consequences without yielding substantial benefits.

It became clear that the country was completely ill-equipped for such a huge threat; the healthcare system was chaotic and unable to effectively handle the situation.

The situation was similar in the other countries that embraced democracy. Except for South Korea and Taiwan, almost everyone else seemed to have made serious mistakes.

However, when it comes to the financial consequences, Britain appears to have suffered the most. If Xi had devised a wicked scheme to undermine the Western world, he might not have come up with anything as successful as this. The lockdown has been detrimental for our primarily service-oriented developed economies.

However, the situation took a drastic turn, and ultimately, China has faced a similar economic catastrophe as America and Europe by shutting down its economy to combat Covid. In fact, current indications suggest that China's economic repercussions may be even more severe.

While the Western countries showcased their efficiency by quickly developing vaccines and medications to combat the illness, China remained stagnant and isolated due to Xi's strict zero-Covid policies. Caught up in their pride and strong belief in Chinese superiority, they failed to acknowledge the detrimental consequences of their actions.

Similar to the situation in Western countries, the enforced slumber of lockdown has served as a breeding ground for all the vulnerable aspects of the economy.

After being compelled by mounting public dissatisfaction to relinquish the zero-Covid strategy, China did not experience the anticipated swift recovery and is currently confronted with a potential deluge of bankrupt businesses, deflation, and a surplus in various sectors such as housing and car manufacturing, due to plummeting demand.

The Chinese development narrative didn't boast any exceptional attributes, apart from its impressive magnitude, rapidity, and the commendable work ethic of the Chinese population.

However, similar to all periods of rapid expansion, this growth was constructed upon a precarious structure of escalating debt resembling a fraudulent Ponzi scheme. With the current collapse of the credit bubble, one begins to question how much longer this illusion can be sustained by solely employing the same tactics.

Many individuals might argue that it is a positive development that China is finally facing consequences for its actions.

Misunderstanding the risks is a possibility. An economically insecure China could potentially pose a greater danger to the stability and prosperity of the Western world than a strong and thriving China.

However, if I were representing India, Brazil, or any of the recent participants in the Brics conference, I would definitely invest my resources in the following area.

Despite the Western indifference that has persisted for many years, China would still not be the answer.