Finally, to facilitate sea transport around the sprawling continent's southern rim, China has already bought into or is in the process of building more than 30 major port facilities, stretching from the Straits of Malacca across the Indian Ocean, around Africa, and along Europe's extended coastline. In January, to take advantage of Arctic waters opened by global warming, Beijing began planning for a "Polar Silk Road," a scheme that fits well with ambitious Russian and Scandinavian projects to establish a shorter shipping route around the continent's northern coast to Europe.
Though Eurasia is its prime focus, China is also pursuing economic expansion in Africa and Latin America to create what might be dubbed the strategy of the four continents. To tie Africa into its projected Eurasian network, Beijing already had doubled its annual trade there by 2015 to $222 billion, three times that of the United States, thanks to a massive infusion of capital expected to reach a trillion dollars by 2025. Much of it is financing the sort of commodities extraction that has already made the continent China's second largest source of crude oil. Similarly, Beijing has invested heavily in Latin America, acquiring, for instance, control over 90% of Ecuador's oil reserves. As a result, its commerce with that continent doubled in a decade, reaching $244 billion in 2017, topping U.S. trade with what once was known as its own "backyard."
A Conflict with Consequences
This contest between Xi's globalism and Trump's nationalism has not been safely confined to an innocuous marketplace of ideas. Over the past four years, the two powers have engaged in an escalating military rivalry and a cutthroat commercial competition. Apart from a shadowy struggle for dominance in space and cyberspace, there has also been a visible, potentially volatile naval arms race to control the sea lanes surrounding Asia, specifically in the Indian Ocean and South China Sea. In a 2015 white paper, Beijing stated that "it is necessary for China to develop a modern maritime military force structure commensurate with its national security." Backed by lethal land-based missiles, jet fighters, and a global satellite system, China has built just such a modernized fleet of 320 ships, including nuclear submarines and its first aircraft carriers.
Within two years, U.S. Chief of Naval Operations Admiral John Richardson reported that China's "growing and modernized fleet" was "shrinking" the traditional American advantage in the Pacific, and warned that "we must shake off any vestiges of comfort or complacency." Under Trump's latest $700-billion-plus defense budget, Washington has responded to this challenge with a crash program to build 46 new ships, which will raise its total to 326 by 2023. As China builds new naval bases bristling with armaments in the Arabian and South China seas, the U.S. Navy has begun conducting assertive "freedom-of-navigation" patrols near many of those same installations, heightening the potential for conflict.
It is in the commercial realm of trade and tariffs, however, where competition has segued into overt conflict. Acting on his belief that "trade wars are good and easy to win," President Trump slapped heavy tariffs, targeted above all at China, on steel imports in March and, just a few weeks later, punished that country's intellectual property theft by promising tariffs on $50 billion of Chinese imports. When those tariffs finally hit in July, China immediately retaliated against what it called "typical trade bullying" with similar tariffs on U.S. goods. The Financial Times warned that this "tit-for-tat" can escalate into a "full bore trade war... that will be very bad for the global economy." As Trump threatened to tax $500 billion more in Chinese imports and issued confusing, even contradictory demands that made it unlikely Beijing could ever comply, observers became concerned that a long-lasting trade war could destabilize what the New York Times called the "mountain of debt" that sustains much of China's economy. In Washington, the usually taciturn Federal Reserve chairman issued an uncommon warning that "trade tensions... could pose serious risks to the U.S. and global economy."
China as Global Hegemon?
Although a withering of Washington's global reach, abetted and possibly accelerated by the Trump presidency, is already underway, the shape of any future world order is still anything but clear. At present, China is the sole state with the obvious requisites for becoming the planet's new hegemon. Its phenomenal economic rise, coupled with its expanding military and growing technological prowess, provide that country with the obvious fundamentals for superpower status.
Yet neither China nor any other state seems to have the full imperial complement of attributes to replace the United States as the dominant world leader. Apart from its rising economic and military clout, China, like its sometime ally Russia, has a self-referential culture, non-democratic political structures, and a developing legal system that could deny it some of the key instruments for global leadership.
In addition to the fundamentals of military and economic power, "every successful empire," observes Cambridge University historian Joya Chatterji, "had to elaborate a universalist and inclusive discourse" to win support from the world's subordinate states and their leaders. Successful imperial transitions driven by the hard power of guns and money also require the soft-power salve of cultural suasion for sustained and successful global dominion. Spain espoused Catholicism and Hispanism, the Ottomans Islam, the Soviets communism, France a cultural francophonie, and Britain an Anglophone culture. Indeed, during its century of global dominion from 1850 to 1940, Britain was the exemplar par excellence of such soft power, evincing an enticing cultural ethos of fair play and free markets that it propagated through the Anglican church, the English language and its literature, and the virtual invention of modern athletics (cricket, soccer, tennis, rugby, and rowing). Similarly, at the dawn of its global dominion, the United States courted allies worldwide through soft-power programs promoting democracy and development. These were made all the more palatable by the appeal of such things as Hollywood films, civic organizations like Rotary International, and popular sports like basketball and baseball.
China has nothing comparable. Its writing system has some 7,000 characters, not 26 letters. Its communist ideology and popular culture are remarkably, even avowedly, particularistic. And you don't have to look far for another Asian power that attempted Pacific dominion without the salve of soft power. During Japan's occupation of Southeast Asia in World War II, its troops went from being hailed as liberators to facing open revolt across the region after they failed to propagate their similarly particularistic culture.
As command-economy states for much of the past century, neither China nor Russia developed an independent judiciary or the autonomous rules-based order that undergirds the modern international system. From the foundation of the Permanent Court of Arbitration at The Hague in 1899 through the formation of the International Court of Justice under the U.N.'s 1945 charter, the world's nations have aspired to the resolution of conflicts via arbitration or litigation rather than armed conflict. More broadly, the modern globalized economy is held together by a web of conventions, treaties, patents, and contracts grounded in law.
From its founding in 1949, the People's Republic of China gave primacy to the party and state, slowing the growth of an autonomous legal system and the rule of law. A test of its attitude toward this system of global governance came in 2016 when the Permanent Court of Arbitration at The Hague ruled unanimously that China's claims to sovereignty in the South China Sea "are contrary to the Convention [on the Law of the Sea] and without lawful effect." Beijing's Foreign Ministry simply dismissed the adverse decision as "invalid" and without "binding force." President Xi insisted China's "territorial sovereignty and maritime rights" were unchanged, while the state Xinhua news agency called the ruling "naturally null and void." Although China might be well placed to supplant Washington's economic and military power, its capacity to assume leadership via that other aspect of the delicate duality of global power, a network of international organizations grounded in the rule of law, is still open to question.
If Donald Trump's vision of world disorder is a sign of the American future and if Beijing's projected $2 trillion in infrastructure investments, history's largest by far, succeed in unifying the commerce and transport of Asia, Africa, and Europe, then perhaps the currents of financial power and global leadership will indeed transcend all barriers and flow inexorably toward Beijing, as if by natural law. But if that bold initiative ultimately fails, then for the first time in five centuries the world may face an imperial transition without a clear successor as global hegemon. Moreover, it will do so on a planet where the "new normal" of climate change -- the heating of the atmosphere and the oceans, the intensification of flood, drought, and fire, the rising seas that will devastate coastal cities, and the cascading damage to a densely populated world -- could mean that the very idea of a global hegemon is fast becoming a thing of the past.
Alfred W. McCoy, a TomDispatch regular, is the Harrington professor of history at the University of Wisconsin-Madison. He is the author of The Politics of Heroin: CIA Complicity in the Global Drug Trade , the now-classic book which probed the conjuncture of illicit narcotics and covert operations over 50 years, and the recently published In the Shadows of the American Century: The Rise and Decline of U.S. Global Power (Dispatch Books).
Follow TomDispatch on Twitter and join us on Facebook. Check out the newest Dispatch Books, Beverly Gologorsky's novel Every Body Has a Story and Tom Engelhardt's A Nation Unmade by War, as well as Alfred McCoy's In the Shadows of the American Century: The Rise and Decline of U.S. Global Power, John Dower's The Violent American Century: War and Terror Since World War II, and John Feffer's dystopian novel Splinterlands.
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