This system seems pretty retrograde/self-defeating to me. From your descriptions, it seems like a gold standard system, just with substituting the US dollar for gold. Are there any proposals to reform the bank’s monetary powers?
You have described exactly the problem that China is facing - breaking from an ideological indoctrination imposed by the West.
Many critics from the left had hoped that the US sanctions, hostilities and the “de-dollarization” wave kickstarted by Russia’s invasion of Ukraine would push China towards reclaiming its monetary sovereignty, but instead we’re seeing doubling down on more exports, more integration with the global market etc. all of which actually render the Chinese economy more vulnerable to US imperialist control, not less. (I have written many many times about why China needs to transition into a domestic consumption economy and will not elaborate here)
At the same time, it should also be said that China’s economy itself is a force to be reckon with, so the US cannot and does not have the capacity to collapse China’s economy, at least without significantly damaging its own economy. What they’re hoping to achieve (through threats of tariffs and sanctions etc) is to get China to fully open up its financial markets so Western capital can enter and starting laying financial claims on Chinese assets etc.
We’re probably going to see a new equilibrium reached with both sides satisfied with a new status quo. The dollar hegemony will be retained and China can continue to grow its economy and bring prosperity to its people. Europe will be (and has been) the biggest loser and unfortunately if the dollar hegemony isn’t challenged, the Global South won’t see a better deal for themselves either. China can continue invest in Global South countries to help development (which is good) but because the US continues to control the global market through dollar, they still have a lot of reach into the global supply chain (and able to lay financial claims on to their assets through IMF etc.).
A completely new economic order is needed to challenge the Washington consensus and its imperialist power.
This system seems pretty retrograde/self-defeating to me. From your descriptions, it seems like a gold standard system, just with substituting the US dollar for gold. Are there any proposals to reform the bank’s monetary powers?
You have described exactly the problem that China is facing - breaking from an ideological indoctrination imposed by the West.
Many critics from the left had hoped that the US sanctions, hostilities and the “de-dollarization” wave kickstarted by Russia’s invasion of Ukraine would push China towards reclaiming its monetary sovereignty, but instead we’re seeing doubling down on more exports, more integration with the global market etc. all of which actually render the Chinese economy more vulnerable to US imperialist control, not less. (I have written many many times about why China needs to transition into a domestic consumption economy and will not elaborate here)
At the same time, it should also be said that China’s economy itself is a force to be reckon with, so the US cannot and does not have the capacity to collapse China’s economy, at least without significantly damaging its own economy. What they’re hoping to achieve (through threats of tariffs and sanctions etc) is to get China to fully open up its financial markets so Western capital can enter and starting laying financial claims on Chinese assets etc.
We’re probably going to see a new equilibrium reached with both sides satisfied with a new status quo. The dollar hegemony will be retained and China can continue to grow its economy and bring prosperity to its people. Europe will be (and has been) the biggest loser and unfortunately if the dollar hegemony isn’t challenged, the Global South won’t see a better deal for themselves either. China can continue invest in Global South countries to help development (which is good) but because the US continues to control the global market through dollar, they still have a lot of reach into the global supply chain (and able to lay financial claims on to their assets through IMF etc.).
A completely new economic order is needed to challenge the Washington consensus and its imperialist power.