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G-20: Russia and China Are Making the US Redundant

They have their own globalization project, which the US can join as a junior partner — or not

This post first appeared on Russia Insider

I guess everyone has had time to chew over the significant and not so significant details of the G20 summit, expressing their opinion on Obama being given an air stair without a carpet, how Therese May forgot to shake Putin’s hand, or Obama spying on the conversation between Putin and Erdogan. My favorite was the box of ice-cream that Putin brought to the leader of the Chinese People’s Republic. I’m glad that our president keeps his promises even on small things, and that Russian export products rate such a high-level PR campaign.

Details, signs and symbols are all very interesting, but I’d like to talk about the serious results of the summit, which could be lost in the fireworks of more or less scandalous incidents that grab the media’s attention.

Let’s start with the statement by Mr Jin Ping, who defended the Chinese political elite in relation to Russia. Mild metaphor is often characteristic of Chinese diplomacy, but this time the leader of the Chinese People’s Republic could not have been more direct. First, he said the “prosperity and development of Russia” was an opportunity for China’s development. And second, he underlined the need for Russia and China to cooperate in defending their respective sovereignties. There was no need for Mr Xi to specify from whom they needed to defend their sovereignty, that was perfectly clear to everyone.

It’s also clear that American “hawks” won’t forgive Beijing for its behavior, and that Xi Jin Ping not only thought twice but obtained the backing of the Chinese political elite for this statement. In the end, Russia’s military umbrella turned out to be more attractive for Beijing than a check-book and the status of “favorite Washington vassal”. This is a big achievement for Russian diplomacy and Vladimir Putin personally.

Now for the second major event, the statement by Vladimir Putin on the future of the world financial system that “we don’t need to list white and black offshore companies – they should all be shut down.”

The world without a tax haven is a world where the vast majority of western companies will not be able to operate (see the current Apple scandal over tax evasion). The biggest offshore territory today is not the Seychelles or the British Virgin Islands but the USA. Translated from diplospeak, Putin, with the total backing of China, plans to “shut down the USA” depriving it of the ability to hide international business from the tax collector .

Finally, until recently all the G20 summits looked like Anglo-Saxon globalization project exhibits, or the “Washington consensus”. A few years ago, they looked like a “geopolitical automobile dealership”, where different globalization projects competed. Now there can’t be competition because Washington has nothing to show for its neocolonial globalization project.  

Meanwhile, the Russia/China initiative, consisting of the New Silk Road and the EEU, is spinning off new transport corridors, new investments, new plans, new financial institutes,  such as the New Development Bank, the BRICS and Asian Infrastructure Investment Bank. Anyone can see which globalization project is on the rise, attracting new members, and which one is best put out of its misery so it won’t disturb others with its death rant.

Obviously, the Anglo-Saxon world will do its best to slow down this process, but I’d say any hope for a reprieve was buried at this summit. And no one will mourn it.  

Source: Live Journal
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