Thread by @TheDailyMao

ding ding ding. That's because if the global military hegemon is also the world's largest net debtor, then you end up with a never-ending stream of policies to drive capital stock in the frontiers into funding deficits in the imperial core

https://twitter.com/qin_duke/status/1349792826687713287

Indeed, this call for gov investments in US technology is a recognition that the old model of spooking Asian/Arab/Euro investors into chasing yield in US capital markets is fading and a new source of funding is needed to tide things over until the US dismantles China's economy

If you look at US export blacklists and investment bans, it's obvious the US is desperate to spook global capital flows into avoiding China's economy and instead keep funding deficits in the US imperial core

ft.com/content/5a7aac…

This is also why the US hated the EU-China #CAI so much - here, even the normally pro-trade pro-biz Bloomberg is alarmed. The point is to make international capital avoid China by tagging it as 'poorly regulated', 'subject to trade restrictions', etc
bloomberg.com/opinion/articl…

Now, there is a large - but shrinking - faction of the US that wants to use capital flows as a crowbar to permanently pry open China's economy and buy it wholesale. Those people fight with people in the US who want to cut China off from capital flows bc the US needs them more

Neither of these groups are truly friendly but at least the former can be negotiated with. Of course, none of this would matter if China simply went all-out on mil and conquered its way to primacy, but China is doing things the hard way by opting for peace and trade instead. /end