Emerging nations get loans from China
One reason China is so prominent is its loans to impoverished and growing nations. Today, 42 countries owe China more than 10% of their GDP. Gross Domestic Product is the annual value of a country's goods and services. In five of these countries, loans equal or surpass 29% of GDP. Most of these countries haven't repaid their loans or won't. what happens when the loans are due? China offers them additional money to repay loans and meet other obligations at a higher interest rate, as is customary with risky loans. What does China want for these loans?
Before China
How did China get so rich? It was given by Americans. We've been buying Chinese-made stuff for over 20 years because they're cheaper than US-made products on the shelf. Many of the companies that made these products domestically have gone bankrupt or migrated to China to make them cheaper. As a result, we send billions to China annually.
Slave labor cheap
How might China reduce costs? China is run by the CCP. This includes wages and slave labor used to make the products. This is why Chairman Xi says the Chinese government is more efficient than the U.S.'s and why China is headed for world dominance. The US has many flaws in its attempts to influence other countries, but we eradicated slavery 150 years ago. (I could go on about how our government has created a new sort of slavery with welfare payments, but I digress.)
Can't Go
Chinese salaries are kept low to attract manufacturers. This is unlike California, which is passing regulations to artificially raise wages. This is why firms and people are leaving California. Unlike California, China has no escape. If the rest of the US imitates California, we won't.
The preceding is a summary of an article that originally appeared on INDEPENDENT SENTINEL.
