Today we will be talking about the ongoing war between China and the United States. This war started around 10 years ago and the United States is starting to just realize that right now.
China is a country which is aware that they can’t stand direct confrontation with the US military so they started using hybrid tactics to undermine, in any possible way, the United States around the world, and weaken the US from inside. Hacking into the US federal employee database, stealing classified information, planting spies in US congress, and finally aiding Russia in the fight with Ukraine. China doesn’t play by the rules because they are a dictatorial country. They can break any possible rule in order to get ahead of the US and that’s exactly what they are doing by helping Russia by providing them with everything possible to support their efforts to destroy Ukraine.
If Russia wins the war in Ukraine it will be a huge blow to democracy all over the world. It will show that democracy is weak and unable to defend itself against dictatorship and autocratic regimes. It will have long term implications on the security of Europe and the balance of power around the world. Together Russia and China want to rule the world. They will be much closer to their goal if Ukraine falls.
Dictatorships never played by the rules. That’s why we have all major western social media companies banned in China and Russia and on the other side we have TikTok which is a Chinese company functioning normally in the United States. But recently the US government decided to do something about this, and they gave TikTok 1 year to divest its assets from China. This only shows the difference between democratic free countries and fully controlled markets by the government in China. Many people consider China a free economy but it’s an illusion which the Chinese government wants us to believe, the same as in Russia. Those countries have deeply rooted dictatorships into their systems and most likely they will never change, change is only a deception for outsiders. We all believed in the year 2000 when leadership changed in Russia that they are on the path to being a free society but it turned out to be another deception created by Putin.
Democratic values will have a harsh test in front of them. Western help to Ukraine should be without any limits because Ukraine is fighting for its freedom and independence from Russia and failing Ukraine will represent falling western democratic values.
The US and China are on a collision course and this collision is inevitable. China fully stands behind Russia but the US doesn’t fully stand behind Ukraine because of intimidation created by Putin. It shows the weakness of the current administration which does not send a good message to US allies. Hopefully this will change and the US will allow Ukraine to fully defend itself and use western provided weapons on Russian territory in order to defend itself. It’s like going to the ring for a boxing match and your opponent suddenly pulls the knife out on you. Russia has an advantage because of intimidating western countries with nukes and paralyzing them to allow Ukraile to fully use their weapons. Hopefully this will change soon.
Meanwhile China stands behind Russia and watches the results on the battlefield.
If Ukraine loses the war it will be also a clear message to the world investing community that investing in western countries is not really the best idea since they can not even help their major ally. Investors will think twice before putting money into the New York stock exchange. They will come to the conclusion that maybe it’s a better idea to invest in the Chinese stock market? China would be really happy to see outflow of capital from the western countries towards their own market and nowadays investor decisions are based on confidence and the potential for profit. If western markets start losing their confidence and Chinese or Russian companies have strong potential for profit, money will start flowing towards those countries. Right now it is estimated that globally investors have 6 to 8% of their money in emerging markets which includes China, Russia, India, Brazil, and South Africa. It is not a lot right now but it can change very quickly in the near future.
The outcome of the war in Ukraine will have much bigger implications than most people realize. It can shake the balance of power around the world and set the tone for many years to come. Parallel to the fight on battlefields in Ukraine, there is a silent fight for investors and their funds all over the world because eventually those funds have to end up somewhere and strengthen some economy. The question is, which economies and which countries will they strengthen?