Translated "Avante!" article by Luís Carapinha, Member of the PCP International Department
During the World Economic Fórum , in Davos, Swiserland, in January last, George Soros attacked China. By choosing a viral issue, within the global corporative media agenda, the billionaire speculator declared that the scenario of “ violent landing is practically inevitable” [regarding the Chinese economy]. Reputed as a no-boarder mega-speculator, admired by the mainstream as a success investor and philanthropist – endorsing one more donation of six million dollars for Hillary Clinton’s presidential campaign, last December - , Soros considered the over-indebtedness in China, the deep cause for the deflationary wave that threats the world economy. Then came Christine Lagarde’s turn, to hold the anti-China campaign banner. For the IMF director-general, along with her pretension for a new mandate, and amid the backstage obscurities of the world high-finance, and darkened by the French justice inquiries and her predecessor Strauss Kahn ghost, of a poor credit destiny, that China ought to be able to avoid a violent landing if it modifies state companies and intensifies market reforms. Lagarde and the great capital want to Beijing privatize the economy strategic sectors and give away the Yuan to free fluctuation, liberating the exchange and monetary policy’s instruments from the Chinese government and central banks. On the way, the fallacy that the Chinese dis- acceleration is defunded ( an economy that grows more than twice the USA rate) is the root of a new spiral of the global economic crisis. As financial markets turbulence grows and the toxic actives monstrous building, rebuilt upon 2008, threats to fall, along with the USA’s FED (Federal Reserve Bank) by throwing off responsibilities, tries to justify the monetary policy dilemmas and the decisions on the reference rates along with the dark winds that blow in China…
Soros’s statement was not ignored in Beijing. Not mentioning the name of the Open Society founder, Le Keqiang, the Chinese prime-minister, qualified as “absurd” the allegations against the Chinese economy. Mei Xinyu, an investigator from the China Trade Ministry, most incisive opinion article, published in the People’s Daily, accused Soros of declaring “war” to China, alluding to the “speculative pressure”, directed against the Asian currencies, mainly the Yuan (People’s Daily Online, 2016.01.27).
The prominence and pre-eminence of people like Soros, amid the dominant system peak, reveal the volatile times one is living and capitalism and its crisis’ structure and dynamics. For sure, the great finance usurious did not ignore any opportunity to fish from shady waters and carry on to build new fortunes, with the exchange and market speculation. But Wall Street’s attack against China and the destabilizing pressures in order to excavate its economy and the Yuan credibility are essentially, strategic elements which identify a vital adversary, within China.
The Chinese economic transition contradictions, unto an anchored economy within the vast home market, holding a minor position concerning exports, is assumed by the Chinese leadership. The great transnational capital, hounded by profit rates contraction and the USA’s unsolvable debt, ought to risk all, in order to profit by the Chinese greatest exposure to pernicious factors concerning its integration in the world economy, yet under imperialism hegemony.
One ought to be en garde, but not confounding the cloud with Juno. Public property holds the Chinese economy high command, including, by monitoring the private sector and investment. The Yuan has become the third international reserve currency and China the greatest world creditor, representing a major role amid the deep force re-arrangement which reflects the world-wide imperialist Triad decay trajectory.
The Pentagon Asian pivot, the pressure policy and the siege to China are, in reality, a dangerous signal of despair and fear.