Why are the Summits between China and the US "multiplying" ?

From 7 months ago there was a long Summit of the governments of Joe Biden, and Xi Jinping at the G20 meeting in Bali, Indonesia on November 15 and 16, 2022 . Two months later, on January 16 and 20, 2023, another Summit in the city of Davos, Switzerland, with the presence of Liu He, the vice premier of China, together with the elite of global capitalism under the motto "Cooperation in a fragmented world" . In the last two months, the visits of "heavyweights" of the United States cabinet to Beijing have surprised the world: Just a month ago, the United States Secretary of State Antony Blinken visited China on June 18, 19, and 20, 2023, and then the arrival of Treasury Secretary Janet Yellen on June 6, 7, 8 and July 9, 2023 to meet with high-ranking officials of the Chinese government in meetings that are already persistent, and constant.

Why are all these Summits between the United States and China taking place? What are you talking about? What agreements are being carried out? While all the world's media, and 99% of the global left, are agitating the imminent World War III between the United States and China, why exactly the opposite is happening and both countries are advancing in Summits and agreements? All the meetings of senior officials from both countries culminate in total silence and secrecy, typical of the "secret diplomacy" that characterizes capitalist governments where agreements are established with their backs to the peoples of the world. But in this case, the brief statements provided to the media allow a glimpse of the issues that are causing these increasingly recurring meetings.

Secretary of State Antony Blinken's statement said they "had a robust conversation about regional and global challenges, including Russia's aggressive efforts against Ukraine." In turn, the statement released after Janet Yellen's visit speaks of the fact that "a series of issues were addressed , including the global macroeconomy and financial developments." These communiqués leave a clue as to which are the issues addressed at the summits, which allows us to understand why these meetings are becoming more and more periodic and permanent.

Two major reasons for the development of the China-US Summits

There are two reasons for this "multiplication" of Summits between the United States and China. On the one hand, what the governments of the United States and China are beginning to analyze is how to face a "post-Putin" world.that has a direct impact on Asia as a result of the military defeat that the capitalist oligarchy that governs the Russian Federation is suffering at the hands of the National Liberation Revolution of the people of Ukraine. The collapse of the Putin regime threatens to destabilize Asia and the entire world, forcing US imperialism and the Chinese capitalist oligarchy to advance a counterrevolutionary agreement to stop the revolutionary process advancing in Europe, the Middle East, and igniting the red lights on the stability of the Chinese capitalist dictatorship regime itself.

The other reason for the "multiplication" of Summits between the United States and China is the collapse of the Chinese economy, and the danger of bursting the largest and most dangerous mortgage bubble in the world. The danger of bursting China's speculative bubble, which is around 30 trillion dollars, explains why US imperialism "comes to the rescue of China" with the massive arrival of White House officials in Beijing.

If China's mortgage bubble were to burst, or China's economy was unable to emerge from the crisis and depression it is in, it could cause a catastrophe equivalent to several times Lehman Brothers that would threaten world capitalism, and the world itself, with death. USA. This explains the frequency, periodicity, and frenzy with which the "Summits" between China and the US are taking place, which forces us to make a Marxist analysis of these meetings and the issues that are involved in them to better understand the phenomenon.

The US and China facing a "post Putin" world

The Ukraine and the crisis in China are not the only issues that are discussed at the Summits, they also deal with the production of Fentanyl, the climate issue, the issue of Taiwan, North Korea, etc. But the most important and urgent issues go first of all through the situation in the world after more than 500 days after the start of the War in Ukraine whose result is very clear: The plans of the Putin regime have been defeated, and there is no more Minimal possibility that Putin can reverse this situation that worsens day by day to the extent that Ukrainian troops advance every day, liberating kilometers, and expropriating military and economic assets in the territories occupied by Putin's army.

As we have explained in successive articles, Putin's defeat is changing the world because on the one hand it has opened a political crisis for the invaders' regime with public disputes between the high command of the army, while the Russian people have turned their backs on him. to the conscriptions called by Putin, and the Russian Federation is slowly sinking into an economic, social, and military crisis in the midst of global political isolation. This entire process has opened up the perspective of the disintegration of the Russian Federation because the peoples that were under Putin's boot begin to rise up and organize resistance in numerous republics, following the Ukrainian example.

But in addition, the military and political beating that Putin suffered has triggered a 3rd global revolutionary wave against capitalism with its epicenter in Europe led by the enormous struggle of the people of France against Macron's capitalist-imperialist government, along with other important revolutions such as the huge mass mobilization in Iran against the dictatorship of the Ayatollah, the 3rd Intifada of the Palestinians in the midst of the political crisis of the government of Israel that together with the renewed struggle of the peoples of Syria, Yemen and Iraq constitute a 2nd Arab Spring.

The 3rd world revolutionary wave was led by the uprising of the Sri Lankan people in Asia, and has caused the "explosion" of the Partisan movement, and the internationalist character that the National Liberation Revolution of Ukraine adopted with the development of the Partisan corps. Russians, and Belarusians, while the partisan phenomenon spreads to the countries of the East, the Caucasus, and other regions of the Russian Federation. At the same time, the attacks of the Ukrainian resistance are multiplying in the territory of the Russian Federation, which has left the invading troops without supplies. The defeats suffered by Putin in the battles of kyiv, Kharkiv, and Kherson forced Putin's capitalist oligarchy to launch the so-called "Winter Offensive" in December 2022 focused on the actions of Putin's private army, the Wagner Group in Bakhmut.

Prigozhin ended up taking Bakhmut in March 2023 at a very high cost: They lost almost 30,000 men. Putin's best troops were thus practically pulverized, which opened a public debate between Prigozhin, Wagner's Chief, and the high command of the regular Russian army, both Defense Minister Shoigu and Chief of General Staff Gerasimov on who were responsible for the defeat. The response of the Russian high command was that the Wagner Group should renew its contracts with the army on July 1, 2023, which was equivalent to the dissolution of the Wagner Group, which led to the uprising of Prigozhin at the head of his men on the 24th of June 2023that they marched several kilometers towards Moscow, which raised the prospect of confrontation between two wings of Putin's army against each other, and exposed to the entire world the serious political, social, and military crisis in which the regime of Putin's oligarchy finds itself.

But here comes into play an issue that is vital to the interests of US imperialism and the Chinese oligarchy. The Russian Federation is a prison of 'peoples' where for more than 20 years Putin's oligarchy has controlled an immense territory that oppresses a huge number of native peoples to guarantee the stability of capitalism in the vast regions that the 'regime controls.

Putin's defeat opens the prospect of a Vietnam for the political regime of the capitalist oligarchs and a triumph of the National Liberation War of the Ukrainian people that can lead to a disintegration of the Russian Federation just as Yugoslavia disintegrated in the 90's . This would bea revolutionary triumph that could lead to the deepening of the world revolutionary process.

The Putin regime has been vital to put a brake on the world revolutionary process, for example in the Middle East to support the dictator Bashar Al Assad of the Syrian people's revolution, to support Iran against the Iranian people's revolution, to crush the small republics under the boot of the Russian Federation, or in Africa. Imperialism has needed these dictatorships in Russia, China, or the Middle East in order to sustain capitalism worldwide. For this reason, all the defenders of the capitalist-imperialist system understand that the Ukrainian revolution, if it succeeds, could lead to the end of the Putin regime, and with it, millions of oppressed people in the world could rise up in an Intifada or new second Arab Spring. a thousand times deeper than anything we've seen so far.

It is this picture that is accelerating the meetings between the United States and China. That is why high-level meetings take place with Blinken's arrival in Beijing, which began with a meeting with Chinese Foreign Minister Qin Gang, then meetings with Wang Yi, director of the office of the Central Foreign Affairs Commission. of the Chinese Communist Party. Under Secretary of State for East Asian and Pacific Affairs Daniel Kritenbrink and US Ambassador to China Nicholas Burns participated in these meetings, while Qin was accompanied by Vice Foreign Minister Hua Chunying, among other senior officials.

But it is not easy for US imperialism to move forward with these negotiations either, given that the Biden government intends to present a profile of "defender of human rights" and of "dictatorships like Putin's" when it is well known that the dictatorship of China persecutes opponents, has concentration camps, brutally represses workers and the people in defense of capitalism, as it has done in Hong Kong. For those honest comrades who have expectations in the United States Democratic Party,and less the imperialist government of Joe Biden. US imperialism comes to the political rescue of the Xi Jinping dictatorship to prevent what is happening with the Russian Federation from happening with China.

The brutal crisis of capitalism in China

The other reason for this "multiplication" of Summits between the United States and China is the serious economic crisis and the danger of bankruptcy that threatens China. From 14% growth in 2007, China's economy has fallen to 3% since the outbreak of the Lehman Brothers crisis in 2008, a nosedive that puts the Chinese economy in depression, and on the brink of collapse.

The depression into which China has fallen is part of the global crisis of capitalism that experienced another sharp peak in the second half of March 2023 when a wave of bankruptcies broke out at Silicon Valley Bank in California, Credit Suisse in Switzerland that continued with the crisis in the US of the First Republic Bank, of the Signature Bank , which threatened bankruptcy to 186 US banks and the main global corporations of Europe .

The dynamics of the crisis threatened to bankrupt the Global Corporations and would have dragged down Wall Street, and all the world's stock markets, which forced a coordinated intervention by the imperialist governments to stop the crisis. To avoid the march towards global bankruptcy, on March 19, 2023, a historic agreement was signed between the 6 main Central Banks of the world : the US Federal Reserve (Fed), the Bank of Canada (BofCa), the Bank of England (BofE), the Bank of Japan (BoJ), the European Central Bank (ECB) and the Swiss National Bank (SNB) who signed an agreement to stop the wave of bankruptcies that came into force on March 2023. The agreement implies the opening of a permanent window for the provision of money that will stop any possible bankruptcy with the aim of "saving" Global Corporations, which allowed the merger of Credit Suisse Corporations with UBS, a network of bailouts to stop any possible bankruptcy.

Capitalism cannot allow any bankruptcy. Any bankruptcy can trigger a global wave of bankruptcies that endangers global capitalism, and that is the danger that is looming now in China where a gigantic bubble called "the mother of all bubbles" has formed which, if it were to burst, would hit all the banks, corporations of the world, and Wall Street. The bubble arose as a result of the enormous injection of money carried out by the Communist Party, which, like all capitalist governments, injected monstrous sums of money into Chinese corporations and banks to save local and foreign bankers and multinationals that operate in the country.

By flooding the banks with cheap money, the Communist Party government encouraged thousands of companies to grant all kinds of cheap credit to the population, through which the governments of the provinces and Chinese cities launched lines of credit for housing intended in principle for the bourgeois sectors, and the high Chinese petty bourgeoisie. But the business grew exponentially, and provided such significant profits that credits began to be extended to sectors of the working class and the town, which developed a home buying boom, taking advantage of low interest rates and the cheap price of the yuan. the National currency.

Home ownership and sale became a business for government officials and the Communist Party who became obscenely rich. But following the laws of capitalism, the spectacular demand for houses, loans, land, construction materials, and bricks triggered inflation. Housing prices, due to the great demand, began to suffer an upward trend, despite government policies to stop the price boom, the brutal rise in prices caused millions of people to stop paying their mortgages, and lose the ability to access their home.

But unlike what happened in the US, when the massive defaults occurred, construction companies in China must keep building. The wheel can no longer stop, because if the construction of homes, the pharaonic mega-works of cities, and all the necessary infrastructure are stopped, millions of contracts for construction companies, brick factories, banks, finance companies, cities, and provinces are cancelled. , which could trigger a massive bankruptcy earthquake, liquidating the country's capitalist economy.

Contrary to what all sorts of paid charlatans claim that China's economy is socialist, independent of imperialism, or a "new imperialism", China's economy is fragile capitalist economy deeply dependent on imperialist capital. If the imperialist Corporations withdrew their capital, China's stock markets would crash in seconds. China is a capitalist country deeply dependent on foreign investment, which outsources capital through the legal figure of "outsourcing." This turns China into a sub-metropolis of imperialist capital that does not have absolute control of the capital that flows, which is why China cannot stop the bubble that it has started.

In turn, the brake on the bubble would cause its immediate explosion and general bankruptcy, which would produce an insurrection of millions of affected people. The United States experienced that situation that it deflected because it had a political alternative to the Bush Administration, and the Republicans, with the two terms of the Obama Administration, and the Democratic Party, to avoid a socialist revolution in the United States. But China does not have that possibility since it is a one-party dictatorship, it does not have a political regime of bourgeois democracy. There is no alternative to the Xi-Jinping regime and the Communist Party, therefore, the fall of the CP, product of the bursting of the "bubble", would accelerate the times of the socialist revolution in China, Asia, and the world.

The impact of the bursting of the Chinese bubble would mercilessly hit all the banks and corporations in the world, and would brutally shake Wall Street. The dictatorship of Xi-Jinping and the PC has no choice but to move forward with the construction and announcements of mega-enterprises that stimulate and allow the bubble not to stop. As millions of people defaulted on their mortgages, China went ahead with building the planned homes, even though no one lives in them after completion.

This is how the shocking phenomenon of "ghost" cities arose , gigantic cities that are built in which no one lives. This is how Ordos Kangbashi was born, the largest ghost city in the world, Tianducheng that imitates Paris, the Chenggong District, Kunming, in the Yunnan Province, the New South China Mall, in the Guangdong province, Yujiapi in Tianjin or Zhengdong in Henan. , to cite a few examples, with millions of unoccupied homes.

The Chinese government should have come to the rescue of Evergrande, China's top construction company, but the threat continues. The United States began taking steps to seize control of China's economy and avert disaster when on August 26, 2022, the Public Company Accounting Oversight Board (PCAOB), a corporation under the control of the United States Congress, signed a Protocol with the China Securities Regulatory Commission (CSRC), and the Ministry of Finance of the People's Republic of China. The Protocol allowed access for the PCAOB to inspect, and fully investigate in accordance with US law, the top 250 Chinese companies, and their accounting firms based in mainland China, and Hong Kong. This turned the US-China relationship into something less than colonial.

But even under the supervision of the PCAOB, the economic disaster and chaos continued to take hold of companies in China, which has forced the direct intervention of the United States Secretary of the Treasury, Janet Yellen. Yellen traveled to Beijing to meet with Chinese Premier Li Qiang, who was recently tasked by China's leader Xi Jinping to revive the Chinese economy, and the "Summit" was held on July 6, 2023 . Taking into account that Janet Yellen is, in fact, the Minister of Economy of the world, she began to act directly on political and economic leaders such as the Prime MinisterLi Qiang; the new head of the Chinese Communist Party (CCP) at the People's Bank of China Pan Gongsheng; Finance Minister Liu Kun and Vice Premier He Lifeng.

Yellen's performance, directly intervening in the country's economy as if China were a "51st state" is the product of what Mile Yu, principal investigator and director of the China Center at the Hudson Institute, has explained : "... they agreed to talk with high-level members of the US cabinet on issues that are vital to the economies of both nations... The reason they caved in is because China's economy is in big trouble... They need the West much more than they know The West needs China... ".

In addition, on July 5, Goldman Sachs downgraded both the Agricultural Bank of China and the Industrial and Commercial Bank of China . The need to get China's economy out of the crisis, and the need to resolve the serious crisis that has opened up in the political regime of the Russian capitalist oligarchy to stop the world revolutionary process, are the two fundamental elements that They explain the sudden periodicity that the meetings between the governments of China and the United States are acquiring.

                                                                           The video shows the "Ghost Cities" in China

After Yanet Jellen's departure from China, all stock market speculators discount the start of new bailouts of the People's Bank of China (PBOC) to rescue the disastrous situation of the economy according to the dictates of US imperialism. The depression of the Chinese economy has caused a desperate situation of unemployment among young people, many of whom resort to religious temples to beg for work, a situation that is accompanied by a deflation of prices, the opposite of what happens in the rest of the world where there is price inflation. The fall into depression is so serious that prices suffer deflation, that is, there is no movement in the economy, or it is so low that there is no level of purchases that stimulates price rises.which accounts for the serious crisis.

We reject the reactionary agreements between the United States and China

Obviously, the "multiplication" of Summits between the United States and China is another slap in the face of the charlatans who support the "Decoupling Theory" and the imminent "advent of World War III" held by the charlatans of the Progressive International    ( IP) and the opinion experts from Revista Jacobin. When the images appear of the officials of the United States government, and the government of China collaborating together against the revolutions of the peoples of the world, all the charlatanism of the march towards a " Multipolar" world collapses. There is no march to any "Multipolar" world,but a greater dominance of the United States and its Corporations over the world economy.

And there is no "challenge" from China to the United States, but more subservience with cabinet officials of the US imperialist government, working directly, and managing China's interests. The fall into depression of the Chinese economy with weak growth shows that there is not the slightest possibility that China disputes the dominance of world capitalism with the United States as the charlatans of the "Decoupling" affirm .China not only does not challenge the United States, but its oligarchy is in such a vulnerable situation that it is asking US imperialism for help to get out of this situation. The arrival of Janet Yellen, Secretary of the Treasury in Beijing, and her stay for more than 4 days with all the highest officials of the Chinese government express the deep concern of US imperialism for the situation in China, and the speed with which the one that the Biden Administration is acting to "rescue" the oligarchy headed by Xi Jinping and the CCP.

But on the other hand, the "multiplication" of Summits between the United States and China shows the crisis and impotence of the ruling classes to sustain the unjust system that they defend. From La Marx International we reject and denounce the Summits", meetings, and agreements between the imperialist government of Joe Biden and the government of Xi Jinping. We do it from the support of the revolution of the workers and the people of Ukraine, as well as the support for the struggle of the people of China and Hong Kong against the sinister dictatorship of the CCP Our struggle is for the abolition of capitalism and the imposition of Global Socialism against all these desperate deals of the counterrevolution to save capitalism.