Opinion: China is losing the new Cold War
An opinion on the Nikkei Asian Review is arguing that China is falling victim to some of the errors made by the Soviet Union prior to its collapse. While China has extensively studied the collapse of the USSR and worked to learn from the bloc’s mistakes, it has risked making some of the same mistakes as its defense spending balloons and its economy levels out due to a rapidly aging population, high debt levels, and trade wars. The Communist party is also reliant on inefficient state-owned enterprises that are responsible for half of the country’s bank credit, but only 20% of employment and value-added. The lessons of “imperial overreach” have also been questionably implemented as the country continues its massive Belt and Road Initiative, which may only serve to generate allies among weak economies.