The recent government formation in China brought surprises to the United States, especially the defense and financial portfolios, which sparked controversy immediately following their occupants were announced.
Two experts in the Chinese file, during their explanations to “Sky News Arabia”, suggest that the government formation choices bear China’s military and economic priorities for the coming period, and send “disturbing” messages to Washington.
Beijing appointed a new defense minister, General Li Shangfu, one of the leaders sanctioned by the United States, while keeping the central bank governor and finance minister within the government formation following Xi Jinping was re-elected as president for a third term.
Punishing Minister of Defense
Washington imposed sanctions on Li Shanguo following a military deal concluded by China with Russia, which included the “Sukhoi 35” aircraft, and the general was the director of the equipment development department in the highest military committee that oversees military technology, and he is the planner of the deal.
The sanctions included a ban on foreign exchange transactions under US jurisdiction, a ban on transactions with the US financial system, confiscation of property within America, and a visa ban.
Entry and exit crisis
China and America exchange visits with defense ministers at the center.
By choosing “Lee”, who is imposed on him to be banned from entering America, a crisis may occur, and Beijing will take similar measures if its minister is refused entry to the United States.
Disturbing leadership for Washington
On the economic level, Parliament chose to install the leaders of the Central Bank and the Ministry of Finance.
The financial leadership recently disturbed Washington following it took measures that gave preference to China and attracted investments inside the United States.
Matty Peking, director of China affairs at the Economic Information Network at The Economist, comments that choosing to continue these sensitive roles shows interest in stability, and facing the challenges of implementing the necessary reforms to ensure Beijing’s ability to compete in the long term.
China’s priorities
An expert in Chinese affairs, Jamal Rifai, infers from the government formation that the state places the military front and economic growth as two main goals for it in the next stage.
He expected that the United States would now be forced to open channels of communication with a person on the sanctions list, otherwise it would lose contact with China at very sensitive points in the South China Sea.
As for sticking to financial leadership, Rifai describes it as a “positive thing” following Beijing was able to achieve high growth figures in the recent period.
“America is certainly watching all of China’s steps, and has begun to quickly analyze these options to develop a plan for how to deal,” according to the political analyst, expecting steps to be taken to resolve the sanctions crisis.
Financial leadership strategy
In the estimation of the writer specialized in Chinese affairs, Khaled Al-Badri, China’s choices in government formation come within the strategy of “encouraging investment” to achieve the goal of being the largest economy in the world.
Beijing has drawn up an economic plan entitled “List of Industries Encouraging Foreign Investment” to attract foreign investors in light of the fierce competition with Washington. The list includes advantages and facilities, including those related to increasing labor hours and cheap salaries.
Al-Badri considers that Beijing “has greatly succeeded in this matter, and is still planning many initiatives to attract more investment.”
The United States and China.. Competition or Cold War?
Corporate immigration
The aforementioned Chinese strategy was reflected in the labor and investment markets in the United States and European countries, and Al-Badri monitors the manifestations of this:
- • International companies have already left their home countries and went to China because of all these factors.
- • Many sectors in America and Europe laid off workers due to high salaries and work systems that give poor productivity; The worker in those countries works half the time of the Chinese worker and receives 3 times his salary.
- • As a result of the above, it is expected that China will reach the top economy in the world in the near future.
