Commentary
On Sept. 26, the Nord Stream pipeline was attacked. Who was responsible? Many people, including German Economy Minister Robert Habeck, were quick to blame Russia. Others pointed the finger at the United States.
While millions of people are busy playing whodunit, millions of Europeans are praying for a mild winter. The attack must be viewed as a watershed moment. As the macroeconomist Philip Pilkington recently warned, the “Nord Stream sabotage could be the point at which future historians mark the end of Western dominance.”
He’s right. Last year, the pipeline, which runs from the Russian city of Vyborg to the German city of Greifswald, supplied European Union countries with 40 percent of their gas supplies. The energy crisis may not weaken Europe’s climate resolve but will certainly weaken its economic resolve.
Germany, home to the largest economy in Europe and the fourth-largest in the world, was, up until very recently, “hooked” on Russian gas. Now, it must find a new supplier, and fast. This search will take time, and time is the one thing that Germany doesn’t have. Winter is almost upon us. If Germany collapses, then the European economy will collapse.
If the European economy collapses, then the U.S. economy will also suffer. After all, strong relations between the United States and Europe haven’t been built on goodwill alone. They have been forged through trade deals, massive investments, and financial markets. Europe and the United States share one of the most—if not the most—integrated economic relationships in the world. If the German domino falls, which looks more likely by the day, many other dominos will collapse suddenly and tragically.
Of course, if Europe and the United States fall, the world will suffer, right? Maybe, then again, maybe not. As Pilkington alluded to, “a rival economic bloc,” known as BRICS, could find itself comfortably insulated from the chaos. An acronym that refers to the developing countries of Brazil, Russia, India, China, and South Africa, BRICS could soon become BRICS SITE, with the likes of Saudi Arabia, Iran, Turkey, and Egypt also rumored to be interested in joining the rapidly developing bloc.
Pilkington noted that since Russia invaded Ukraine in February, BRICS members have ramped up trade deals and strengthened financial ties. “It appears that the goal is for these economies to decouple as much as possible from the West. If they are successful in doing that—and it looks like they may be—they may avoid the depression,” wrote Pilkington.
We are witnessing the birth of a new world order, a dramatic change in political affiliations and ideologies. BRICS brings together countries with real economic and militaristic clout. Of all its members, China is the most powerful. Africa, once a continent that looked to the United States for guidance, now looks to China for support. The EU, once a somewhat cohesive, respectable union, is in shambles.
At the same time, China is busy forging relationships with Indonesia, another supposedly BRICS-bound country, and the United Arab Emirates, home to one of the fastest-growing economies in the world. Interestingly, according to researchers at Harvard, Indonesia is expected to have one of the more robust economies by the end of the decade. Another interesting point involves Saudi Arabia, a BRICS member and close ally of China. The Middle Eastern giant now boasts the world’s fastest-growing major economy. This growth has been boosted by phenomenal levels of trade with China, the unelected BRICS leader.
Of course, China is not without its own sizable weaknesses. However, it’s important to remember that many of China’s weaknesses—a rapidly aging population, fewer people getting married, disgruntled, unemployed youths—are also shared by other superpowers, including the United States.
It’s also important to remember that China is working to establish a new payment system to disrupt the U.S. dollar’s dominance. The CCP’s Cross-Border Interbank Payment System (CIPS), which offers clearing and settlement services in Chinese yuan, now has over 1,300 participants, covering 106 regions and countries.
Communist China wants to replace the United States as the world’s leading superpower. Only a fool would bet against the despots in Beijing fulfilling this ambition. When discussing the Chinese Communist Party (CCP), it’s worth remembering the proverb, “tomorrow belongs to the people who prepare for it today.” With Xi Jinping, a dictator-for-life, in power, China can plan accordingly. The CCP is in a truly unique position. Its members can sit down and make plans that will last years, maybe even decades. The CCP’s dream of “Sino-forming” the world is fast becoming a reality. China, the world’s No.1 trading partner, makes rules that dozens of other countries are willing to abide by. On the other hand, the United States has a genuine image problem—it appears to be losing its global appeal.
Ostensibly, the world is moving toward multipolarity, with power being distributed somewhat equally among a number of countries. In truth, though, we could be entering a period of profound unipolarity, with China pulling the strings.
Views expressed in this article are opinions of the author and do not necessarily reflect the views of The Epoch Times.
