China's Economic Power Play: A Threat to Global Markets

China's engagement in global markets is not about competing fairly, but rather about advancing its national power and dominance. The country's Communist Party views economic interactions as a means to capture foreign assets and technology, direct private enterprise toward state objectives, and use economic tools to further its interests.

The WTO's hope that capitalism would 'democratize' China has proven false under Xi Jinping's leadership since 2012. Instead of liberalizing the economy, Beijing has built a military capable of challenging the US, clamped down on human rights, and tightened control over enterprise. American companies such as Nike, Starbucks, Best Buy, Home Depot, Uber, Google, LinkedIn, Yahoo, eBay, and Gap have either exited or significantly reduced their presence in China.

China has amassed enormous industrial capacity, often with state support that has been the subject of WTO disputes. The country now accounts for 80 percent or more of global production capacity in major parts of the solar photovoltaic and battery supply chains and dominates electric vehicles, telecommunications equipment, drones, shipbuilding, steel, critical-mineral processing, and biotech.

The problem is not just economic dependence but also the leverage China can exert over foreign assets and technology. The distinction between China's citizens and the Communist Party must be made, as millions of Chinese have little meaningful ability to challenge state policy or seek independent redress.