China’s Threat to Global Capitalism: Nationalist Nonsense

In both Europe and the US politicians are generating fear over China’s economic success. In the US, it is common for Republicans and Democrats to compete over who takes the toughest stand against China. But now there is a constant uproar over trade, technology, investments, and military issues, enough to disrupt aspects of globalization. Chinese investments in the US and Europe have run into roadblocks. Trade issues have upset the free flow of commodities and supplies. Attacks against Huawei are slowing down the expansion of 5G technology. And China’s grand strategy for expanding global infrastructure is viewed with suspicion and draws accusations of colonialism. But underneath all the rhetoric and attacks, the transnational capitalist class (TCC) keeps investing across borders and into China. Behind the policy shifts is a crisis of legitimacy for global capitalism. The social divisions resulting from decades of neoliberal globalization have exploded into view. Deeply shaken by the 2008 economic crisis and facing deep social problems from COVID-19, Western capitalism needs an enemy other than itself. China, the convenient “Other,” offers the best target. For the majority of the TCC. the preferred path forward is negotiations through transnational institutions, without disruption to cross-border flows of capital and goods. On the other hand, political elites tasked with maintaining legitimacy with an angry population have pursued nationalism as a politically convenient strategy. The resulting contradictions are causing substantial instability for global capitalism. Schooled in Marxism, the political framework of the Chinese leadership leads it to expect the US state to implement policies of the