https://americanmind.org/post/china-is-on-the-ballot-in-2020/
American voters will decide if the PRC wins.
In early May, President Donald Trump ordered a federal retirement fund to scrap its plans to shift several billion dollars’ worth of U.S. government employee savings into Chinese stocks. The administration is now planning a broader review of China’s unfair and potentially dangerous usage of American capital markets. This is about far more than mundane matters of bureaucracy and asset allocation. It epitomizes the existential battle facing America.
The Status Quo
Our public servants will now no longer be underwriting military contractors that support the Communist Party of China’s (CPC) People’s Liberation Army—an army that has threatened U.S. servicemen and engaged in espionage against U.S. civilians. Nor will we be funding “enterprises” indicted for violating U.S. sanctions in conducting business with enemies like CPC customer Iran and satrap North Korea; or technology companies that produce the surveillance equipment used to run the CPC’s modern-day gulags and supply other police states. These are all welcome developments.
But the fact that these travesties would have transpired had the Trump administration not intervened is a sobering truth with implications that transcend capital markets. It touches on the long-term competition into which America has finally entered with the People’s Republic of China (PRC). Near-term, the 2020 election is critical to sustaining this competition.
Following the Cold War, the stated rationale for U.S.-PRC relations was one of economic self-interest and idealism: Economic liberalization would lead to political and cultural liberalization. Relatedly, the story went, an integrated and prosperous China would be a peaceful and stable one.
For decades, Joe Biden has been one of the most senior proponents of this view. During the height of the 2000 debate that resulted in the granting of permanent normal trade relations (PNTR) to China, putting it on a glidepath to World Trade Organization accession that would accelerate its drive toward superpower status, Biden asserted that PRC “prosperity…has put China on a path toward ever-greater political and economic freedom.”