A Different View: New IMF Rules To Isolate China and Russia?

[The IMF has, says Congress and the NYTimes, become more inclusive of China and Russia (see previous Frontlines post, https://revolutionaryfrontlines.wordpress.com/2015/12/29/ny-times-on-the-liberalizing-of-the-international-monetary-fund/).  But others, looking deeply, see the new IMF rules as counter-attacks on Chinese and Russian other-imperialist initiatives.  See this lengthy article for more details. — Frontlines ed.]

The IMF Changes its Rules to Isolate China and Russia

by Michael Hudson, CounterPunch, December 15, 2015

The nightmare scenario of U.S. geopolitical strategists seems to be coming true: foreign economic independence from U.S. control. Instead of privatizing and neoliberalizing the world under U.S.-centered financial planning and ownership, the Russian and Chinese governments are investing in neighboring economies on terms that cement Eurasian economic integration on the basis of Russian oil and tax exports and Chinese financing. The Asian Infrastructure Investment Bank (AIIB) threatens to replace the IMF and World Bank programs that favor U.S. suppliers, banks and bondholders (with the United States holding unique veto power).

Russia’s 2013 loan to Ukraine, made at the request of Ukraine’s elected pro-Russian government, demonstrated the benefits of mutual trade and investment relations between the two countries. As Russian finance minister Anton Siluanov points out, Ukraine’s “international reserves were barely enough to cover three months’ imports, and no other creditor was prepared to lend on terms acceptable to Kiev. Yet Russia provided $3 billion of much-needed funding at a 5 per cent interest rate, when Ukraine’s bonds were yielding nearly 12 per cent.”[1] Continue reading

NY Times on the “Liberalizing” of the International Monetary Fund

[The IMF and the World Bank are key instruments of the finance/montary/credit-debt management of the entire world.  Enacted at the end of WWII to establish US leadership of the world imperialist system, both IMF and WB have come under endless criticism and challenges over the decades, but the emergence of new imperialist powers from post-socialist Russia and China has posed historically-contending  blocs-in-formation as unprecedented dangers to the once-presumed “permanent” US hegemony.  Both IMF and WB have become increasingly tattered and less effective instruments, as challenges have grown.  Congressional reforms aimed at a more durable structure for the IMF are hailed by the media-of-empire NY Times in the following editorial, which writes, strategically, ‘If the fund and the World Bank are to remain relevant and be truly global organizations, they cannot be seen as European and American fiefs.’ — Frontlines ed.]

Congress Gets Out of the I.M.F.’s Way

By The New York Times EDITORIAL BOARD, December. 22, 2015

The House went into holiday recess after passing a measure that included ratification of International Monetary Fund reforms.

After five years of Republican foot-dragging, members of Congress last week ratified an agreement that will increase the capital of the International Monetary Fund and give developing countries like China and India a greater say in the organization.

This should strengthen the fund at a time when its expertise is needed to help revive a slowing global economy. In 2010, the Obama administration negotiated an agreement with other countries to double the I.M.F.’s capital to about $755 billion, so it could lend more money to troubled countries like Greece and Spain. The changes also gave more voting power in the fund’s management to China, India, Brazil and Russia while slightly reducing the clout of European countries and the United States. Continue reading

How complete, and what cracks, in US Hegemony in the World Cyber-Imperialist System?

[The following is a long and detailed report from the leading French media giant, examining the history and extent of US domination of the internet and cyber-surveillance throughout the world imperialist system — and the attempts of other countries and independent forces to break, or secure some level of autonomy, on that dominance.  It’s a long article, but worth reading.  While much of the current reporting on these issues focuses on personal secrecy issues vs. “national security” claims, additional issues are driven by  economic competition and contention, political manipulation, and military alliances, and related “intellectual property rights” and “scientific research/development” controls.  

Those involved in struggles for self-defense, self-determination, internationalist solidarity, investigative journalism, anti-capitalist research, and for socialist/proletarian revolutions must recognize which instruments are useful in pursuit of their strategic goals, and what other means must be found and utilized to be sure their enemies are not aware of their ways before their own comrades are, and before solid initiatives can take root among the masses..  —  Frontlines ed.]

US wants to control, and own, the world online

We’ve got our eye on you

Edward Snowden not only told the world about US state surveillance of national and personal secrets, he reminded us that almost all the companies surveying us for commercial gain are American.
 by Dan Schiller, Le Monde diplomatique, November 1, 2014
 

Revelations on US National Security Agency (NSA) surveillance programmes based on Edward Snowden’s cache of its data files caused “fundamental, irreversible changes in many countries,” wrote journalist Glen Greenwald, who brokered many of the disclosures (1). In 2013 Chancellor Angela Merkel of Germany and President Dilma Rousseff of Brazil took public stands against US privacy invasions — they had personally been victims — and the UN General Assembly voted unanimously to affirm online privacy as a human right. In June 2014, responding to the EU, the US Justice Department promised to send legislation to Congress that would grant European citizens many of the (inadequate) privacy protections accorded to US citizens.

But to grasp fully the importance of the Snowden affair, we must broaden our focus beyond the transgressions of an overbearing superstate and examine the impact of his revelations on the forces shaping the global political economy, structured around the US.

Continue reading

Strikes at Foxconn factory in Brazil halt iPhone production

Funcionários da empresa Foxconn continuam em greve nesta quarta-feira (Foto: Sandro Zeppi/TV TEM)

Up to 3,500 employees for the Brazilian arm of Apple’s iPhone manufacturing partner Foxconn allegedly went on strike late last week, causing a factory-wide shutdown of production. The strike is still reportedly in effect at the factory in Jundiai, Brazil.

Harry Tunnecliffe, Macworld Australia
18 September, 2014

9to5Mac has received a number of tips and translated local news reports concerning the matter, and claim that every single production line had stopped when the strike was first enacted last Thursday. Workers are reportedly demanding changes to work and pay policies, and as part of the strike, have blocked other employees from entering the site. This would explain the complete halt to production.

Funcionários da empresa Foxconn continuam em greve nesta quarta-feira (Foto: Sandro Zeppi/TV TEM)The strike comes at a critical time for Apple, as despite record production levels, Foxconn are struggling to keep up with the amount of pre-orders that have already taken place – which are achieving record numbers.

Continue reading

Western Moves to Isolate Russia Spurs China-Russia Energy Deal

President Vladimir V. Putin of Russia, right, and President Xi Jinping of China on Wednesday in Shanghai, where they signed a deal to send gas through a pipeline from Siberia to China. Credit Pool photo by Mark Ralston

BEIJING — China and Russia agreed to a major 30-year natural gas deal on Wednesday that would send gas from Siberia by pipeline to China, according to the China National Petroleum Corporation.

The announcement caps a decade-long negotiation and helps bring Russia and China closer than they have been in many years. The contract was driven to a conclusion by the presence of President Xi Jinping of China and President Vladimir V. Putin of Russia in Shanghai for the last two days. Continue reading

Should anti-Imperialists oppose only US imperialism?

[The world imperialist system today has entered a period of crisis, internal instability and disarray, growing internal conflict and inter-imperialist contention, conflict, and the beginnings of opposing bloc formations. It is a far-from-healthy and broadly discredited system, forcing the costs of its desperate wars and troubled (and false) bourgeois “recoveries” on the masses of people worldwide. Wave upon wave of resistance and rebellion has begun, sometimes toppling old imperialist puppets, though finding the path to create liberated societies very difficult. Fantasies that the US had, since WW2, successfully formed a system of efficient and unchallengable control of world imperialist domination, have fallen on hard times. Imperialist Russia and imperialist China have grown from the defeat of socialism and the seizure of power by capitalists, and have set upon an assertion of power and authority in regional, economic, political, military, monetary and financial affairs (though each is struggling to contain growing internal discontent). Anti-imperialists and revolutionaries who only think in the framework of decades-long opposition to US hegemony in the world system will look in vain, and to their own discredit, for friends or allies among the contending imperialists. The only path forward is to build revolutionary proletarian class-conscious parties and mass-based political forces with eyes wide open, independent of ties and influence by any and all imperialists.
Revolutionary Frontlines has recently received a new study from redpath.net, which examines the shape of the imperialist system today, with special emphasis on the still-debated role of China and Chinese imperialism. The introduction to this path-breaking study and analysis is posted here below. The entire document can be viewed at the website of http://www.red-path.net, where the document (produced by an independent research and writing group) was first posted. It can also be viewed and downloaded at http://www.mlmrsg.com/79-statements/82-is-china-an-imperialist-country-considerations-and-evidence. — Revolutionary Frontlines]

IS CHINA AN IMPERIALIST COUNTRY?  by NB Turner, et al.

It has long been known and understood that the entire world has been under the control of capitalist-imperialism. For a time, a section of this world broke from it, beginning with the victory of socialism in Russia and continuing through the Chinese Revolution, constituting a socialist world. Yet, in time, the socialist countries, through internal class struggles in politics and economics, were seized by capitalist conciliators and advocates, and then by capitalists themselves, who were largely within the ruling communist parties themselves. First in Russia, and later in China, when these counter-revolutions and coups took place, there ensued a period of entry and integration into the world imperialist system. The Soviet Union, at first under the existing signboard of socialism, continued much of its established national and economic power relations into a new social-imperialist bloc (socialist in name, imperialist in reality). The Russian capitalist-imperialist attempt to maintain this bloc, or important sections of what had been part of this bloc, and its historic allies, has continued in the years since the “socialist” signboard was discarded. In China, the defeat of the proletariat and the capitalist capture of state power, after the death of the great revolutionary Mao Zedong, have also led to a period of integration into the world imperialist system. China still operates under a “socialist” signboard, but has conducted itself unambiguously as a capitalist power.
Before the last decade, especially since the demise of the “socialist bloc,” the US was commonly seen as the sole Superpower, to which all other powers had to defer. The system which the US had designed, at the end of WW2, was global in scope, and to some more “democratic” in appearance than the old colonial empires. But it was built around the elitist privilege of power and authority, meaning the US as Superpower was at the centerpiece of the controls.
But in the last decade the imperialist world system is not what it used to be. Throughout the world, corrupt and comprador regimes have faced significant and often unprecedented mass popular opposition movements which have revealed the deep instability of the old neo-colonial arrangements. Continue reading

Capitalist China rapidly expanding its share of inter-imperialist contention and rivalry

[After Mao Zedong died 35 years ago, bourgeois forces within the leadership of the Chinese Communist Party led by the opportunist (revisionist or false-Marxist) Teng Hsiao-Ping seized power and began a ruthless period of destroying socialism and of capitalist profiteering and accumulation (under false banners of “market socialism”,  “development” and “modernization”).  After re-organizing the Chinese workers to serve, for several years, the established Western imperialists as a “cheap labor” resource, the Chinese bourgeoisie, concentrated in both “state-owned” enterprises and private corporations,  launched a more open imperialist drive with foreign investments, global resource acquisition, military force expansion, expanded trade relations, and corollary  diplomatic, media, educational, cultural, and joint-venture monetary and finance-credit initiatives.  The following article details one area of this expansion — arms exports — which inevitably creates new deals for parts supplies, operational training, logistical integration, joint military training exercises, and other aspects of new alliance formation.
All who oppose imperialism, and who have learned so much from the oppression of many imperialist powers such as the British Empire and US imperialism, must take note of this development of Chinese Social-Imperialism (socialist in words, imperialist in deeds).  While China is not the largest, and there are certainly many smaller, imperialist powers within the single imperialist world system, the people have no interest in taking the side of one imperialist versus another.  Only when the people’s revolution destroys and banishes imperialism on a world scale will creative history on human terms truly begin. — Frontlines ed.]

http://www.nytimes.com/2013/10/21/world/asia/chinas-arms-industry-makes-global-inroads.html?hp&_r=0

China’s Arms Industry Makes Global Inroads

October 20, 2013

BEIJING — From the moment Turkey announced plans two years ago to acquire a long-range missile defense system, the multibillion-dollar contract from a key NATO member appeared to be an American company’s to lose.

Members of Aviation Industry Corporation of China displayed a model of the JF-17 jet at an exposition in Beijing last month.

For years, Turkey’s military had relied on NATO-supplied Patriot missiles, built by the American companies Raytheon and Lockheed Martin, to defend its skies, and the system was fully compatible with the air-defense platforms operated by other members of the alliance.

There were other contenders for the deal, of course. Rival manufacturers in Russia and Europe made bids. Turkey rejected those — but not in favor of the American companies. Its selection last month of a little-known Chinese defense company, China Precision Machinery Export-Import Corp oration, stunned the military-industrial establishment in Washington and Brussels.

The sale was especially unusual because the Chinese missile defense system, known as the HQ-9, would be difficult to integrate with existing NATO equipment. China Precision is also subject to sanctions from the United States for selling technologies that the United States says could help Iran, Syria and North Korea develop unconventional weapons. A State Department spokeswoman said this month that American officials had expressed to the Turkish government “serious concerns” about the deal, which has not yet been signed.

Industry executives and arms-sales analysts say the Chinese probably beat out their more established rivals by significantly undercutting them on price, offering their system at $3 billion. Nonetheless, Turkey’s selection of a Chinese state-owned manufacturer is a breakthrough for China, a nation that has set its sights on moving up the value chain in arms technology and establishing itself as a credible competitor in the global weapons market. Continue reading