Equality, missing link in globalisation

Primarily these new means are the "China Manufacturing 2025" and the Belt and Road Initiative. The new leadership is determined to deleverage the Chinese economy and seek new opportunities through economic restructure and promoting Chinese industries competing overseas.

Politically, Xi Jingping has waged a very strong campaign against corruption and prepared to deal with the international and domestic pressure for promoting Western-style democracy in China.

To a great extent the changes of the direction in China under President Xi are in response to its domestic pressure and imbalances. In China, the huge inequality has become the greatest threat to the existence of the current regime. It forces the government to reinforce the political control and raise the banner of nationalism at the expense of democracy. In addition, in order to sustain the economic growth, the Chinese government has to initiate programs for the restructure of the Chinese economy.

Unfortunately given the distorted global economic structure, China's economic rebalance inevitably produces an adverse effect on the US economy. The elites of the US, whether Republicans or Democrats, are convinced that China will not become a democratic (subornative) nation orbiting the US and will endeavour to become world leader in advanced industries. The US politicians are therefore united to adopt an unprecedented combative stance towards China.

Obviously the confrontation between the US and China is deeply rooted into the globalisation that is mainly driven by capital demanding maximization of return on investment. This has proven to be divisive on societies regardless China or the US.

On the part of the US, the greedy capital in search of profit worldwide has caused stagnation or even deterioration to the living standard of the ordinary US citizens. This has led to rise of populism and fuelled the trade war waged by President Trump. If such a tendency persists, it could be expected that both the Chinese and the US economy will be further militarised.

The only way for the US and China to escape from this dreadful confrontation is to change globalization parameters and place the pursuit of social equity as the primary principle.

If China and the US both make a breakthrough in the pursuit of social equity, it would provide a common ground for these two countries to work out a new world order capable of dealing with the inequality, tension between nations and races, and climate changes.