China Has Changed Capitalism, and America Must Turn Inward to Change Itself ---A Discussion on U.S.-China Relations with Incoming U.S. Secretary of State Marco Rubio

中国改变了资本主义，美国必须刀刃向内，改变自己----下任美国国务卿卢比奥谈美中关系

Dec 06, 2024

By Marco Rubio, the current U.S. Senator from Florida.

【Editor’s Note: Senator Marco Rubio critiques the U.S.'s flawed globalization strategy, arguing that America's belief in capitalism's ability to transform China has backfired, leading to China's rise as a formidable rival. He asserts that capitalism hasn't changed China; instead, China has altered capitalism, leveraging its vast workforce and low costs to attract American industries and build a dominant global supply chain. This shift caused American workers to lose jobs while U.S. corporations profited, exacerbating domestic inequality. Rubio warns that China's economic power now challenges U.S. global influence by exporting its governance model, appealing to developing nations with its efficiency over America’s bureaucracy. He emphasizes that America's problem isn't China but its internal systems serving corporate interests over national priorities. To compete effectively, Rubio calls for a fundamental overhaul of America's economic and political frameworks, despite resistance from entrenched powers benefiting from the status quo, asserting that the U.S.-China competition will define the 21st century.】

Let's listen to the introspection and analysis from a Cuban-American politician who has served as Speaker and has intentions to run for President. To date, this is the most profound and pertinent analysis of the U.S.-China competition I've heard from the U.S. Congress.

Recently, the two parties in the United States formed a China Committee, whose sole task is figuring out how to deal with China. Unexpectedly, on the first day of the committee's meeting, the theme wasn't about methods to confront China but about turning the focus inward—how to change America. The committee's core viewpoint holds that China's emergence as America's biggest challenge isn't China's problem but America's problem. It's America's disastrous strategic path over the past thirty years that has allowed China to become its greatest rival. So now, as we sit here discussing how to deal with China, the crux isn't about China but about the United States itself. To confront China, we must first thoroughly turn the blade inward and change ourselves. Let's hear what they have to say.

The speaker, Senator Marco Rubio from Florida, said:

Today's biggest global issue is the increasingly fierce competition between China and the United States. This is a historic challenge, and America has taken too long to recognize it.

But I believe that when America focuses on U.S.-China competition, we should understand that the core issue isn't China but America itself.

The core problem is the bipartisan consensus in the United States over the past few decades—a belief deeply embedded in our economy and politics—that globalization brings wealth and peace. This has almost become a national faith.

America believes that when people, goods, and capital flow freely around the globe, it can solve almost all the world's problems.

This deep belief in globalization has constructed America's political system and underpinned our foreign policy.

To be fair, this viewpoint was quite useful in the fifty years after World War II. Based on this belief, America built a post-war Western free market.

Countries like Western Europe and Japan, which prospered from post-war ruins, all relied on America's deeply held free-market ideals.

After these countries became prosperous, they, in turn, became important markets for the U.S., which sustained American prosperity. It was a virtuous cycle.

More importantly, through this virtuous cycle of free trade, America shaped the values of these countries, making them share the same values as us and become our steadfast allies.

Overall, in the fifty years after World War II—that is, from 1945 to 1995—America's system of 'free trade transmitting values' was successful.

Then, the Cold War ended; the Soviet Union collapsed. Our presidents—and I say 'presidents' because this is a problem shared by presidents from both parties—

Our presidents became arrogant and conceited. I remember the popular theory at the time called 'the end of history.' America had defeated the Soviet Union; capitalism had triumphed over communism.

In the future, the whole world would become free capitalist countries like the U.S.; economic liberalization would inevitably change socialism.

American presidents believed that any country immersed in capitalism would not only become prosperous but also become America's friend.

Fueled by this arrogance, presidents began to fervently support globalization because they believed globalization was about spreading capitalism and spreading capitalism would keep America prosperous. The U.S. started signing a large number of trade agreements worldwide, supporting numerous international trade organizations and formulating various free trade rules.

America eagerly invited countries worldwide to participate in globalization, even those that didn't share our values or long-term strategic goals.

Among all the trade agreements America supported, none has had a greater impact today than supporting China's entry into the WTO in 2001.

At that time, China was the most populous country. America embraced China not because it benefited American workers or because America could gain significant advantages.

The only important reason American presidents supported China's entry into the WTO was their belief that capitalism could change China.

The Soviet Union had been defeated by the U.S.; our system already dominated the world. Changing China would be a piece of cake. Could China be stronger than the Soviet Union?

Based on this arrogant perception—that capitalism would inevitably change China—America strongly supported China's integration into globalization. Presidents believed that as Chinese people ate Big Macs and drank Coca-Cola, they would gradually accept American values and become true friends of the U.S.

Presidents firmly believed that capitalism would change China. But what about today? In the past 23 years, capitalism hasn't changed China; instead, China has changed capitalism.

I'll repeat: capitalism hasn't changed China; China has changed capitalism.

America lost. We lost. Let's bravely admit it.

China opened its doors, warmly welcoming America. It attracted foreign investment with cheap labor and manufacturing costs. Millions of American jobs and important industries and factories moved en masse into China.

American capital flooded into China to reap high returns. But what did American workers get?

American workers lost their jobs. Factories closed down. Towns became desolate. Yet our presidents confidently told us not to worry—that the jobs lost weren't good jobs anyway, just low-end ones. These lost low-end positions would be replaced by better jobs.

If low-end jobs were to go to China, American workers would have better opportunities. And think long-term: after giving low-end jobs to China, the Chinese would become wealthier and then buy American products. They'd buy American phones, watch American movies, eat American food, and be influenced by American culture in every aspect.

Then, they'd transform from a socialist country into a capitalist friend of America.

That was the fantasy of our presidents. But today, without me saying more, you all know that this talk hasn't materialized at all.

Chinese manufacturing has rapidly developed, achieving great success in all aspects. China has become the world's factory, and the global industrial chain can't function without China.

Look at the pathetic state of America. I don't need to say more; just look at the annual U.S.-China trade figures—isn't it clear enough?

In 2022, the total trade between China and the U.S. was $692.6 billion, with the U.S. buying $538.8 billion worth of Chinese goods and China buying $153.8 billion worth of American goods. The trade deficit reached a record $385 billion.

This isn't just one year; it's every year—every single year like this. You tell me that the Chinese would buy a lot of American goods, and then America would change China?

Clearly, it's Americans buying a lot of Chinese goods, and then China changes America.

So, who is changing whom? It's a total failure.

China's middle class has grown at a historic pace, but America's middle class has collapsed.

This is a zero-sum game. The data is alarming. If you compare the loss of American workers' jobs with the rise of China's middle class, both happened simultaneously and to almost the same extent.

America's decline has contributed to China's prosperity. But is this China's fault? No, it's the responsibility of those arrogant presidents after the Cold War.

Now China is wealthy—very wealthy—but the Chinese aren't spending their money on American products. They buy Chinese-made goods. The Chinese support for their own products far exceeds Americans' support for American goods.

Some say that's not right—that the Chinese buy Apple products and Teslas. But are Apple and Tesla's products made in America?

Every iPhone and Tesla that Chinese people buy isn't manufactured in America; they're all made by the Chinese themselves. American workers haven't gained any benefits from the Chinese purchasing iPhones or Teslas.

However, Apple and Tesla have provided enormous jobs and robust supply chains for China. You need to know that every Tesla produced in China has an entirely Chinese upstream and downstream supply chain, which has now made China's electric vehicle manufacturing lead the world.

This is China's strategy: using a vast market and low costs to attract American manufacturing, helping upgrade Chinese industries and building a complete industrial chain, and then kicking America aside.

Now you see a wealthy China. After gaining wealth, they are venturing into the world, exporting the Chinese model, posing a significant challenge to the American model.

China travels the world telling other countries that the American model can't solve many problems and that the Chinese model is much more practical and effective.

China can swiftly act after making decisions, concentrating all efforts on one task, unlike America, where a policy undergoes endless debates and wrangling—a road that China builds in a month takes America three years.

China tells Third World countries that this is the difference between China and America, which is very appealing to many of them. Third-world countries want rapid development and not to waste endless time on decision-making.

In fact, America is facing the serious consequences of this historically disastrous mistake—that capitalism hasn't changed China; China has changed capitalism.

Every day, we confront the capitalism that China has altered—not only in our Congress but also in our society, on our televisions, and in our media.

America is highly divided internally. Democrats and Republicans are in constant dispute, and these disputes are no longer about ideas but attitudes. We target opposing parties, not different matters.

As long as it's proposed by the opposing party, no matter what it is, we oppose it. We try every means to undermine the achievements of the opposing party, even if such sabotage doesn't benefit our own party—we just want to destroy.

America's system is becoming highly fragmented, and the same division exists between our upper and lower classes.

In the thirty years of U.S.-China cooperation, American workers have lost miserably, but American businessmen have profited immensely. On one side, corporate profits hit record highs; on the other, millions of blue-collar workers lose their jobs and income.

Once wealthy American blue-collar workers now receive monthly welfare checks. Once vibrant American communities are now desolate.

America has become an addict—we are 'addicted to China.' If we don't take a hit of China's 'drugs' every day, we'll suffer withdrawal and feel terrible.

Of course, I'm referring to America's addiction to Chinese goods. It's not just cheap products—you know, a vast number of Chinese components have flooded the American market. Without Chinese parts, American manufacturing can hardly move forward.

China dominates the global supply chain—from food to medicine to industrial products—and everything relies on China. The shortage of goods in America during the pandemic has proven this point.

America can't do without China; we're addicted to China. But China is America's biggest competitor. How can you be addicted to your biggest rival?

Does this mean that in the future, America will, like an addict, wag its tail and beg China for another dose?

This is terrifying. A trade deficit of $385 billion with China is horrifying. It means America is fragile and can easily be blackmailed and coerced by China.

When China controls the world's supply chain, look at America itself. Today, America's economy is highly concentrated in two areas. Turn on the TV—all financial media discuss only these two fields all day.

One is finance—Wall Street, futures trading, short selling—a deceptive money game that produces no tangible products.

The other is large tech companies: Apple, Google, Microsoft, Amazon, and Tesla—these giant multinational corporations also produce no physical goods, and even if they do, they're mostly manufactured in China.

These companies create enormous wealth but offer the fewest jobs to American workers. What's worse, these giant multinationals possess more and greater power than the U.S. government.

In many cases, the U.S. government has to obey them, and these multinational corporations have no loyalty to our country or our people.

The interests of multinationals aren't aligned with America's national interests. They only care about their shareholders' profits and will not hesitate to sacrifice America's national interests to benefit their shareholders.

But what about China? Tell me, which large Chinese company doesn't serve China's national interests? Is there one? Name one for me.

China has massive state-owned enterprises, all serving national interests, and numerous private companies, such as Huawei and TikTok (抖音), which also serve China's national interests.

The difference is vast. America finds it difficult to concentrate its efforts to compete with China.

Now we should recognize that the so-called economic globalization making America more prosperous is entirely a fantasy. We should further realize that, compared to the Soviet Union, China is a much stronger, more dangerous, and more challenging opponent.

Even at its peak, the Soviet Union didn't pose as great a threat to America as China does now.

The Soviet Union was never America's industrial competitor, but China is.

The Soviet Union was never America's technological rival, but China is.

The Soviet Union could never turn America into an addict, but China can.

America is addicted to China. China has significant control over our economy and a substantial influence on our society. American companies that betray our interests have a free lobbying army in Washington.

This free lobbying army isn't paid by China but gains enormous benefits from cooperating with China. They're all willing to speak on China's behalf.

They never care whether Americans will have jobs in five years or whether America will lose to China in the competition. They only care about their wallets and corporate wealth. They help China weaken America without compensation.

This model is effective and enduring, making Americans oppose their own government, making American companies oppose our government—undermining us from within, dividing us, making us fight ourselves.

But is this China's fault? Ladies and gentlemen, this is the core of my speech today—is this China's fault?

It's not China's fault. It's America that has created this series of systemic loopholes and political chasms. China has merely seen and exploited our vulnerabilities.

The fundamental problem isn't with China but with America's political system. The current American political system serves corporate capital rather than national interests—that's the key.

The core issue isn't what China has done to us; it's what we need to do to ourselves. If America wants to win the competition with China, we must change the essence of our nation serving corporate capital.

We need to regulate companies that don't serve America's national interests. We must change the operating model that dominates our economic policies and political system.

Every day in Congress, I hear things like, 'Oh, you can't do this to China because it will hurt American trade,' or 'Oh, you can't do that to China because it will harm American interests.'

Please! That's not American trade; it's your corporate trade. That's not American interest; it's your multinational corporations' interests.

I'm fed up with this. This is a disaster for the entire American system. It's not 1991 or 2000 anymore. We're facing a strong opponent, yet we're smug and complacent.

Will America really win? With our current disastrous national system, the longer we compete with China, the less favorable it is for us. The longer we drag it out, the smaller America's advantage becomes.

Ladies and gentlemen, in my upcoming speeches in Congress over the next few weeks, I will outline a clear alternative blueprint. This is far better than me sitting in Congress all day debating which Chinese products to ban or which Chinese industries to attack.

Remember, what we need to do isn't ban a particular Chinese product or strike a specific Chinese industry. What we need is to change the disastrous globalized system that has been operating in America for thirty years.

Attacking Chinese industries or banning Chinese products won't defeat China.

But thoroughly changing America's own disastrous system of the past thirty years can.

But I must say upfront that changing America's own disastrous system is no easy task because those who have thrived under the old model still hold enormous power in America. They will try every means to obstruct our efforts to change America. They will use all their power to maintain this old system.

But my fellow Americans, we have no choice but to fight the obstructers of the old forces to the end because the outcome of this U.S.-China competition will define the entire twenty-first century for the world.

This translation is an independent yet well-intentioned effort by the China Thought Express editorial team to bridge ideas between the Chinese and English-speaking worlds. Original speech video with more complete content, including brief mentions of Ukraine, Hong Kong, and Taiwan:【Editor’s Note: Senator Marco Rubio critiques the U.S.'s flawed globalization strategy, arguing that America's belief in capitalism's ability to transform China has backfired, leading to China's rise as a formidable rival. He asserts that capitalism hasn't changed China; instead, China has altered capitalism, leveraging its vast workforce and low costs to attract American industries and build a dominant global supply chain. This shift caused American workers to lose jobs while U.S. corporations profited, exacerbating domestic inequality. Rubio warns that China's economic power now challenges U.S. global influence by exporting its governance model, appealing to developing nations with its efficiency over America’s bureaucracy. He emphasizes that America's problem isn't China but its internal systems serving corporate interests over national priorities. To compete effectively, Rubio calls for a fundamental overhaul of America's economic and political frameworks, despite resistance from entrenched powers benefiting from the status quo, asserting that the U.S.-China competition will define the 21st century.】

Let's listen to the introspection and analysis from a Cuban-American politician who has served as Speaker and has intentions to run for President. To date, this is the most profound and pertinent analysis on the U.S.-China competition I've heard from the U.S. Congress.