In President Trumps National Security Strategy (NSS) he names China as a “strategic competitor”. During the 2016 election campaign, Trump repeatedly focused on the currency manipulation and unfair trade practices with China.
Steve Bannon, Trump's former campaign advisor and National Security Advisor, recently laid out specific goals America must accomplish in order to thwart China's ability to surpass the US and become a global economic superpower including:
"...one is called Plan 2025, which they will dominate, they laid this pout a few years ago. They will dominate ten separate industries, including robotics, artificial intelligence, chip manufacturing, all by the year 2025 and they’re very far down the road in doing that.”
“...one belt, one road... tying together the central Asian countries with this Old Silk road. The World Island, who controls central Asia controls the world.”
"They’re really working out to become the world’s reserve currency and also have financial technology that the United States cannot de-couple them from the world’s capital markets, which is our one point of leverage.”
“...they’re leading in the rollout of 5G and will have 5G way before the United States will have 5G. So, thry will dominate in technology that way.”
China’s Ministry of Commerce, spokesman Gao Feng, stated, "Abandoning the Cold War mentality and hegemony, the world’s two largest economies would maintain win-win cooperation and mutual development, and together could push prosperity in the global economy...China has never engaged in, and will never pursue so-called economic aggression policies."
However, with President Trump's new tax plan, businesses and technological powerhouses have already begun expanding and returning from overseas to invest in American infrastructure with a globally competitive new corporate tax rate of 21%, down from 35%, as well as a one time reduced tax gift for repatriating companies from overseas.
Even though the tax bill was just signed into law today, here are a few examples of its effects on the US business market:
- AT&T quickly responded to this historical tax cut and announced Wednesday it will be issuing over 200,000 U.S. employees a special $1,000 bonus and will also increase US capital spending by $1 billion.
- Also, thanks to Republicans passing historic tax reform, Boeing has announced a new $300 million investment initiative.
There’s more… Fifth Third Bancorp announced it will “raise its minimum hourly wage for all employees to $15, and distribute one-time bonus of $1,000 to more than 13,500 employees.”
- More winning! Comcast announced it will invest a whopping $50 billion into infrastructure projects over the next five years due to the Republicans’ tax plan. The media giant will also give $1000 bonuses to more than 100,000 employees.
- Canadian businesses may also be looking to migrate from Canada to the USA in the near future.
- It has now become affordable for Apple to fulfill a longtime goal and repatriate $252B in cash that currently sits overseas.
Quarterly GDP projections, the true measure of a country's wealth, have steadily risen into the high 3's over the course of the year with it potentially topping an annual 3% GDP growth for President Trump's first year in office. This is significant as President Obama was the only US president in history never to achieve an annual GDP of 3% or higher, also stating that it would be "impossible" to ever see it achieved again.
Some economic scholars project coming years could potentially see annual GDP of 4% or more. This would be a huge rival to China's current economic dominance on the global stage.
So what are your thoughts? Do you believe America or China will win the coming economic battle for global domination?[/list]
