Sergio Olivas
A New Cold War?
On October 4, 1957, the Soviet Union launched the first artificial Earth satellite named Sputnik 1. Not only did the Soviets launched Sputnik 1, the Space Race ignited as the United States sought to catch up in the technological space frontier.
It was thought of to have the technological advantage to display dominance and be the premier superpower. Throughout the Cold War and its aftermath, the United States maintained a technological edge in its military defenses. As a result, few if any, without considering the War on Terror, would challenge the United States’ superpower status.
In the modern era, soft power through economic might is demonstrating to be the new way to maintain superpower status.
Currently, Chinese President Xi Jinping champions the One Belt, One Belt initiative. The initiative hopes to revive the Silk Roads - roads from the Roman Empire establishing stable trading routes connecting Europe and Asia.The ambitions modern Roads go beyond infrastructure projects to build roads, but also include massive bridges and ports in Europe, Asia, and Africa for both land and sea trading routes. These projects are built by Chinese workers and financed by the Chinese government under payment conditions by the receiving countries. Failure to make the payments enables to government to own the road, bridge or port
It was thought of to have the technological advantage to display dominance and be the premier superpower. Throughout the Cold War and its aftermath, the United States maintained a technological edge in its military defenses. As a result, few if any, without considering the War on Terror, would challenge the United States’ superpower status.
In the modern era, soft power through economic might is demonstrating to be the new way to maintain superpower status.
Currently, Chinese President Xi Jinping champions the One Belt, One Belt initiative. The initiative hopes to revive the Silk Roads - roads from the Roman Empire establishing stable trading routes connecting Europe and Asia.The ambitions modern Roads go beyond infrastructure projects to build roads, but also include massive bridges and ports in Europe, Asia, and Africa for both land and sea trading routes. These projects are built by Chinese workers and financed by the Chinese government under payment conditions by the receiving countries. Failure to make the payments enables to government to own the road, bridge or port
Image Source: The Washington Post
Critics of the One Belt, One Road initiative charge the Chinese of using predatory practices against developing countries to result in defaults and the eventual acquisition of the project. Charges also criticize the projects for military expansion for the Chinese
In an effort to curb growing Chinese influence and their One Belt, One Road initiative, the Overseas Private Investment Corporation (OPIC), a corporation funded by the United States, is being expanded through the The Better Utilization of Investments Leading to Development (BUILD) Act. Since President Nixon, OPIC aids U.S. businesses navigate emerging markets, providing financial and political assistance. The BUILD Act looks to expand the $29 billion portfolio cap to $60 billion and merge OPIC and programs managed by the U.S. Agency for International Development into a new agency, the U.S. International Development Financial Corporation (USIDFC).
However, some skeptics questioning the success of USIDFC have noted that the political nature of OPIC does not pursue the most profitable projects and has a record wasting resources.
Aside from the development projects, the United States and China are in a tit-for-tat trade war with the U.S. accusing China of unfair trade practices and forced technology transfers. Some proponents of multilateral agreements such as the Trans Pacific Partnership would be more effective approaches, instead of tariffs, to address China’s growing influence. With first mover advantages in artificial intelligence, 5G internet, or entering emerging markets, the United States’ dispute mirrors a new Cold War. Instead of a Space Race, this new conflict will be defined by trade and international economic relations
In an effort to curb growing Chinese influence and their One Belt, One Road initiative, the Overseas Private Investment Corporation (OPIC), a corporation funded by the United States, is being expanded through the The Better Utilization of Investments Leading to Development (BUILD) Act. Since President Nixon, OPIC aids U.S. businesses navigate emerging markets, providing financial and political assistance. The BUILD Act looks to expand the $29 billion portfolio cap to $60 billion and merge OPIC and programs managed by the U.S. Agency for International Development into a new agency, the U.S. International Development Financial Corporation (USIDFC).
However, some skeptics questioning the success of USIDFC have noted that the political nature of OPIC does not pursue the most profitable projects and has a record wasting resources.
Aside from the development projects, the United States and China are in a tit-for-tat trade war with the U.S. accusing China of unfair trade practices and forced technology transfers. Some proponents of multilateral agreements such as the Trans Pacific Partnership would be more effective approaches, instead of tariffs, to address China’s growing influence. With first mover advantages in artificial intelligence, 5G internet, or entering emerging markets, the United States’ dispute mirrors a new Cold War. Instead of a Space Race, this new conflict will be defined by trade and international economic relations
