China On Pace To Dethrone The US

Tyler Durden's picture

Authored by James Holbrooks via,

“Not sure whether China will be nice to self-ruled Taiwan? Wait until after the 19th National Congress of the Communist Party.


What’s in store for the hotly disputed, resource-rich South China Sea, where Beijing has taken a military and technological lead since 2010? Wait until after the Congress.


Coffee maker wouldn’t start today? Wait until after the Congress.


Wait. But you get the idea: This event, due to start Oct. 18, is monumental enough to put a lot of Asia on hold — and make it worry.

That’s how Ralph Jennings opened his piece for Forbes on Wednesday. Humor aside, the point he’s making is the same one I made at the end of September — that China’s upcoming National Congress is a really big deal.

China sets the regional tone on nearly all matters, as Jennings points out in his article:

"Chinese foreign and economic policies shape much of Asia. China’s ever-growing efforts to build and fund infrastructure around the subcontinent through initiatives such as One Belt, One Road have obvious impact on smaller countries that might otherwise struggle to finance their own projects. Neighbors from Japan to India are watching China for foreign policy cues that affect their iffy diplomatic relations with the region’s major power.”

But China’s geopolitical influence extends far beyond Asia. The country has long been viewed as the rising global superpower on pace to dethrone the United States. Much has been written and said about China’s willingness to embrace this role as more and more countries turn to it for guidance.

China is highly conscious of this trend. It feels the world’s eyes aimed squarely in its direction and very much wants everything at the upcoming Congress, during which President Xi Jinping is expected to be reaffirmed as leader and appoint his own trusted allies to key positions of power, to go smoothly.

This is why, as I pointed out last month, the Chinese government has implemented a system-wide crackdown - both in the streets and in cyberspace - on political dissent ahead of the Congress. It all goes back to perception and the desire to present to the world the “One China” the country’s government says exists.

But perhaps there’s even more to it than that. It may be that once power is further solidified under Xi at the Congress, China will be ready to fully embrace the role of world leader. On Wednesday, its state-run Xinhua News Agency ran an article titled “China offers wisdom in global governance,” which opened with the following:

“With its own development and becoming increasingly closer to the center of the world stage, China has been injecting positive energy into the international community in pursuit of better global governance over recent years.”

Xinhua writes that China’s leadership ability is already well-established and that even though it’s currently undergoing a restructuring of its own, its vision for the world is one rooted in peace and innovation:

“As the world’s second largest economy and the biggest contributor of global economic growth, China’s innovative concepts on improving global governance and promoting global peace and common prosperity have gained wide recognition and support from other countries.


“Undergoing structural reforms, China is implementing its new concept of innovative, coordinated, green, open and shared development, eyeing a quality growth model driven by innovation.


“Meanwhile, the country is assuming its international responsibility to promote common development with other countries in the interconnected world.”

Continuing, Xinhua points to international acceptance of One Belt, One Road as evidence of China’s ability to take the lead in adapting to the modern era:

“The Belt and Road Initiative, building a community of shared future for mankind and the principle of extensive consultation, joint contribution and shared benefits, all proposed by China, have been incorporated in U.N. resolutions, showing wide international consensus on the concepts.


“Equality, mutual respect and win-win cooperation feature in the Chinese plans, which also safeguard the irreversible trend of globalization.”

This “win-win cooperation” is China’s guiding principle, Hu Angang of Tsinghua University in Beijing, told Xinhua. He even dubbed the philosophy “win-winism,” as the state news organ explains:

“’Win-winism’ highlights an open world economy for common development of all countries and joint efforts to address global challenges such as climate change and terrorism, and exchanges of different cultures, said the researcher.”

Xinhua goes on to write that Liu Wei, president of Renmin University of China, says the country has taken the lead by “putting forward new concepts, thoughts and plans to reshape the global governance system.”

With China in the spotlight ahead of the National Congress, it shouldn’t be taken lightly that the superpower would allow such bold language by one of its state mouthpieces. Indeed, it could be that a post-Congress China will be a far more assertive player on the world stage.

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slipreedip's picture

The US is dead, Long live China 

loebster's picture

"its vision for the world is one rooted in peace and innovation"

While America has been warmongering for IsraHell.

sincerely_yours's picture

"China On Pace To Dethrone The US"

China's already dethroned the US as #1 economy in the world.

Web-search it and see.

Rjh's picture

Hahahaha, what a load of shit. Divide China's GDP by its population and then divide the United States' GDP by its population, and you'll understand why this article is a joke.

Squid-puppets a-go-go's picture

ok, but then erase the arbitrary currency valuaton, put Yuan and $US as 1:1, then run that math again, sunshine

Rjh's picture

Erase whose arbitrary currency valuation?

Your argument is like trying to make the claim that a pound of lead and a pound of gold are equal in value because they are the same weight.

Squid-puppets a-go-go's picture

no, silly. Your 'GDP measurement', based in $US as it is, makes a pound of lead produced in America more valuable than a pound of lead produced in China

If you solely look at the physical production of both countries, China dwarfs america already. Its only the lllusion of currency valuation that makes us imagine otherwise

Rjh's picture

That's because the US lead will be pure lead while the Chinese lead is made of 5% lead and 95% Chinesium.

Squid-puppets a-go-go's picture

strawman, my poor man

you arent even worth educating

Rjh's picture

Dude, you're trying to claim 1:1 in some fantasy world right out of the gate. Strawman nothing.

Déjà view's picture

ACA @ 20%/GDP...Attorneys agree...WINNING !


O say can't you see...

The Fourth of July, made in China
How Chinese manufacturers profit off fireworks, grills, and flag sales.

Mao...Baseball...Hot Dogs...Apple Pie...Sweet & Sour Soup...

HopefulCynical's picture

You pretend that China, Japan etc. can innovate.

They cannot, in any meaningful sense. Maybe thousands of years ago, but not now. They build upon and improve what others, usually White Europeans, innovate. (Not always...but usually.) At this, they are fantastic.

As soon as the European countries - white people - exterminate the globalist Marxists, a new golden era for all of humanity will dawn. We'd really like some help with that, but at this point we understand that the rest of you fuckers are going to sit around and wait on us to do the heavy lifting. That's fine. Don't expect us to be overly quick to share, when it's all over. And don't whine about it, either. Step up or shut up.

Hell, something approaching socialism might actually work in the Star Trek sense, if we could get rid of the fucking Marxist parasites, get out to the solar system, the asteroid belt, etc. and significantly reduce the scarcity of our closed planetary system.

Remember, Central Banks are plank #5 of the Communist Manifesto. End The Fed - begin the future.

Government needs you to pay taxes's picture

All that needs to be done to halt China's growth and innovation is to encourage a few nig-nig breeders to 'nest' in their country.  Before long, they will comprise 13% of the Chinese population and be contributing to an incremental violent crime wave the likes of which have never been seen before.  Oh, they'll be needing some EBT, HUD, an 'equal opportunity' . . . and some NFL opportunities.  Bye Bye productivity, hello crime, welfare, and taxes!!!!

HopefulCynical's picture

All these downvotes. Oy vey! Hasbara has been busy this morning.

Dr. Acula's picture

>a pound of lead and a pound of gold are equal in value because they are the same weight

False, the gold weighs less since it's measured in troy pounds whereas lead is measured in avoirdupois pounds.

Ethereal's picture

PPP would say natural rate is closer to 20 CNY : 1 USD

Justin Case's picture

Divide merica's debt per head. Some mind numbing reality sets in. China is growing and merica is in decay.

mkkby's picture

No way an authoritarian government will become the next reserve currency. Not in 100 years.

In case you fuck tards have missed it, china is in full capital flight mode. You go to jail if you try to take your money out. Chinks are trying as hard as they can to find ways out. It's still a closed system.

China also has much worse bad debt than the US. Come to zero hedge and actually try to read and understand the articles some time.

The US dollar will be king for at least 3 more decades, because THERE IS NO CREDIBLE REPLACEMENT on deck. Not even close.

panicearly's picture

Per capita gdp is a joke in this context. 

Rank Country GDP - PER CAPITA (PPP) 1 Liechtenstein $139,100 2 Qatar $127,700 3 Monaco $115,700 4 Luxembourg $104,000
Endgame Napoleon's picture

Take into consideration that in both countries the mammouth GDP accrues to a few, with the minions splitting a pittance.

post turtle saver's picture

I did... you're missing $7 trillion USD before you can approach making that claim... hell, the US is $2 trillion USD larger than the whole EU...

yeah, hate to break that to you sunshine, but the new improved 2016 numbers are out and your claim is a steaming pile of horseshit... try again

Davidduke2000's picture

I guess you believe that the us has 8000 tons of gold that nobody can see or audit.

Government needs you to pay taxes's picture

But one of our Dear Jew Central Banksters said he saw datt go', widis I's.

Davidduke2000's picture

the majority in the us still believe that their military are the best  yet they cannot win wars. even WWII , it was Russia who conquered Berlin as the americans were busy shipping German generals and inventors to South America and bring them back to the us, one of them the maker of the Saturn 5 and the maker of the atomic bomb. 

Rjh's picture

Peace and innovation through slave labor and 1984 style brainwashing. You couldn't even think a comment like that in China without being thrown in the klink. People on this site say some crazy shit about the United States and that's because they are free to do so. Just like I have the right to tell you to go eat a dick, faggot.

Davidduke2000's picture

Controlling 1.4 Billion people with democracy is impossible, it may take 100 years, I prefer the gradual move China is doing, it started with a mild capitalism and moving quicker every few years.

China as of now is the largest economy, but the fraud in the us keep repeating the same garbage that the GDP is the highest in the world, but 100 million people are out of the labor force, which does not make sense.

mkkby's picture

You are conflating democracy and capitalism. Do you even understand the words?

Go to china and say Xi is crazy, or one of the many things people say openly about Trump. You will be taken out and shot. Fake trial, no lawyers. Your family gets billed for the bullet.

As for capitalism. You cannot take your money out of china. People go to jail for that. Which is why the wealthy are all trying to escape.

Tarjan's picture

I will dispense with the ad hominem attacks and simply note that I live in China and the country is the "real deal". They have an educated, hard working populace and a government that really does not want to deal with some 1.3 billion pissed of people. Their external debt is almost nothing. 

Bye the bye, how many hundreds/thousands of kilometers high speed rail does the US have?

Get you butt on a flight and spend some time here before you make your unsupported assertions.


Soul Glow's picture

The whole financial system is dead.  China can't just replace the dollar.  They own too many US denominated assets.  Maybe they have accumulated a lot of gold this decade, if so it rivals the accounts of the Fed.  And who's to say China actually has the gold they say they do?  I won't trust either the US government or China to tell me they haven't shipped gold to Rothchild vaults.  

DjangoCat's picture

Where is the audit of the Fed?  Why do you placidly accept what they say??

post turtle saver's picture

let's fucking get real here... compared to the US and EU, the word "audit" is fucking kryptonite to China... look at the gyrations everyone had to go through just to get them into the XDR basket, and even then people were like "hmm, doesn't hold water but ok... for now"

Squid-puppets a-go-go's picture

and given that its public knowledge that china never sells its gold mining output to the outside world, and has been buying hand over fist according to western mints/refineries, why wouldnt we assume their stash is greater, not less than, the 1800 t or whetever they claim they currently hold

Soul Glow's picture

Sure, they are mining and the output isn't leaving the boarders that we know of.  Yet the gold may not end up in the government vaults but the vaults of chinese oligarchs.  Just as there is likely no gold at the Fed, or in the vaults of the Bank of England, but in the vaults of Rockefellers and Rothchilds.

Rjh's picture

Einstein, explain to me why gold is so valuable.



Soul Glow's picture

Because it is finite.  Because it doesn't corrode.  Because it is easily malleable.  Because it is rare.  Because it is difficult to get to.

Games Without Frontiers's picture

March out the monetary history of gold and the monetary history of paper currency, and we'll go from there.

sparksmass's picture

They don't say they have very much, 1800 tons I think.  It's the reported 20k tons they have accumulated that would matter.

Justin Case's picture

If Chinese Gov't buys all the gold and silver production in China, and sold it, it would be noted quite loudly in merican media for sure, but like Russia they are accumulating gold and will use it to back the oil tade money. The world gold council would also be aware of that quantity being sold. It has been noted that China is still purchasing gold on the markets. China has unloaded a lot of USA to date. China is also spending on OBOR project, so that will help off load the toilet paper from merica.

Soul Glow's picture

You're missing the point.  Let's say chinese mines don't ship the gold out of the country.  Let's say they first ship them into government vaults, or at least they say they do, but then ship them to private vaults held by oligarchs.  So even though they tallied up the gold for government vaults they backdoored the gold and it now lies in private hands.  This is likely what has happened by the Fed and likely by the chinese government.  No government is to be trusted, afterall.

loebster's picture

"its vision for the world is one rooted in peace and innovation"

While America has been warmongering for IsraHell.

Silver_Knight's picture

China doesn't produce nearly enough food to feed their people, while America is the largest exporter of grain.  

grasha87's picture

I have begun reviewing Austrian economics books for those of you interested. Here is my first review of many:

HRClinton's picture

FYI, a shocker for all you 'Muricans:

If you rank the world economies by GDP and PPP (Purchasing Power), then the Top 6 economies are:

   1. CHINA

   2. EU

   3. USA

   4. JAPAN

   5. GERMANY 

   6. RUSSIA

That's right, folks. The USA is #3. Which also means that the EU can tell Trump to Effoff, regarding renewed sanctions on Iran. 

No wonder the (((Neoco'ens))) are freaking at being locked out of OBOR, that unites China, Russia and the EU. Not to mention the South Silk Road countries.

The times, they are a changing.  Forget you, Neoco'ens! 

HRClinton's picture


World Bank (WB) figures are in terms of Bankston numbers, not in terms of PURCHASING POWER in each country -- the PPP-adjusted numbers. 

E.g. $1000 USD spent in the US is not the same as $1000 spent in Russia, China or even Europe.

The MSM does not want to talk about it, nor to have you talking about it.


bass ackwards's picture

The Us should put nukes is Soko Taiwan and should also adopt an 18 China policy..yes 18 different China's. Further an Asian PATO should be set up at once with all nations surrounding china..the organization will have a nuke first policy..China attacks anyone..ever, it becomes a giant solar panel for everyone else on earth.

Endgame Napoleon's picture

Give thanks to our elites who shipped our middle class over there for short-term gain without batting an eyelash, trading their country’s strength for a lot of $$$$$. Give thanks to our poor and what’s left of our middle class for trading a strong nation for a $5 savings on a pair of jeans and/or on home decor items made with particle-board, featuring a “convincing”’ simulation of a wood veneer.

Dr. Bonzo's picture

That's right, folks. The USA is #3...

LMFAO. You make it sound like #3 is number #300. What a farce. I've lived in countries with economies ranked.... fuck, who knows. Lived like a king. You really think that shit is relevant? I'll take quality of life in an American flyover state over ANYTHING that China has to offer EVER any time of the year. EVER and ALWAYS. You know why I love Asia? Cause it appeals to my enjoyment of living in Dystopia. That's right. Dystopia. Everything in Asia is basically like living in your favorite scifi movie. Warts and all. The odors... the rot... the stench... the crowding.... the lack of law... or order... Asia is always somehow teetering on the brink. I never get that in the middle of an Iowa field or an Idaho lake. I enjoy it cause I'm still young and healthy and appreciate the lessons I learn from studying decrepitude up close and personal. Maybe I enjoy it so much because I get the "white privilege" shit which for sure is alive and well all over Asia. Maybe because I know in the back of my mind I can always pull my parachute and dump this place when the shit hits... who knows. I'm certain if I were a tiny little Asian dude wedded to 12 generations of mud field rice peasants and all the familial obligations and headaches the relatives endlessly impose on eachother, stuck in my 400sf 2-bedroom prison cell with chunky wife and some squealing little mouths who can only escape from a living hell by hoping I somehow amass a small fortune in order to bribe their way through life... I might have a slightly less romantic take on Asia. I'm a fucking tourist here and I know it. No matter I lived here  2 days, 2 weeks, or 2 decades. Make no illusions about that.

You can keep your fucking China. Hope the Chinese feel the same way about the massive shithole they've created as you do and hope they all stay home. Forever.

China #1.... smfh.....