The shift stems from the breakdown of the perception that the economic relationship between the U.S. and China was mutually beneficial. It is now seen as a zero-sum competition where the U.S. must contain China to maintain its primacy. Additionally, China's military power has grown as a share of its GDP, even without increased spending, due to rapid economic growth.
The Biden administration has made significant efforts in alliance-building, particularly through organizations like the Quad and AUKUS. However, they face constraints due to the U.S. Congress's reluctance to fund large-scale economic initiatives that could sustain these alliances. The focus is primarily on military and tech sectors, with less emphasis on economic support.
China's decisions on climate policy are more significant because China is the world's largest emitter, accounting for 30% of global emissions. In contrast, U.S. emissions are on a downward trend and are projected to account for only 5% of global emissions over the next 80 years. China's commitment to neutrality by 2060 and its active role in the clean energy revolution have a greater impact on global climate outcomes.
Adam Tooze argues that China's economic problems are more accurately attributed to overinvestment and diminishing returns, rather than increasing authoritarianism. The CCP's efforts to stop the housing boom and shift towards a green energy transition are seen as strategic decisions to manage long-term growth and sustainability, rather than purely political moves.
The narrative that China's zero-COVID strategy was consistently repressive and ineffective is misleading. Initially, China successfully contained the virus with low mortality rates. The strategy of dynamic optimization, which aimed to minimize lockdowns, worked until the Shanghai lockdown in 2022, which was perceived as cripplingly capricious and ineffective. This strategy, however, did not undermine the broader success in managing the pandemic in its early stages.
China's climate policy is crucial because it is the largest emitter of CO2, accounting for 30% of global emissions. Unlike the U.S. and Europe, which are on a downward emissions trend, China must fundamentally alter its trajectory, moving from significant annual emission increases to a sharp decarbonization. Xi Jinping's commitment to neutrality by 2060 and China's actions in clean energy, such as photovoltaics and electric vehicles, make it a key player in global climate efforts.
The West tends to view the climate crisis through a Western-centric lens, often attributing it to capitalism without recognizing China's unique development model. China's rapid urbanization and industrialization, driven by a mixed economy with strong state involvement, have significantly contributed to global emissions. While market integration played a role, the state's planned energy policies, such as doubling coal output, were crucial in driving this growth.
Adam Tooze returns to PTO to discuss the extent to which war with China is increasingly being treated as a serious prospect in Washington and the Pentagon. We also talked about how successful, or otherwise, the Biden administration has been in constructing regional alliances against China during the last four years. And we went on to talk about why the Chinese Communist Party leadership's decisions over climate policy dwarf the US presidential election in significance. Finally, we discussed the economic slowdown in the country and Adam explained why he disagrees with analysts who see China's economic problems as primarily a consequence of increasing authoritarianism.