Russia and China Engage in Trade: Are There Other Implications?

The Officers of the St George Militia Company in 1639 
by Frans Hals

Let us watch how the conflict is unfolding and what some of the options might be. There has been some indication for a time that China and Russia will start to negotiate deals. That will also determine whether China begins to allow for more lethal aid to Russia. If that occurs it will likely create a pivot point where its not just a need for fuel/energy and markets that China is interested in but also the desire to have ideological based battles. 

Read China is helping to prop up the Russian economy. Here’s how and think about what is occurring on an economic and geopolitical influence level. Russians may also become increasingly concerned that they are being drawn into having a subservient role with China as dependency increases. This is also why Russia may want to save face and get out now. If their forces get routed they run risks of immediate default and if they stay they run long term risks of dependency.

Ideology is important here because it does have some impact on business networks and why certain choices are made through cultural based assumptions. One thing China might think about is if an ideological approach best for their long term health or is it best to engage in the world community to encourage free markets. Its a choice with each step moving closer to a breaking point where you can't just tip toe back out of a position.

While the pouring of hot and cold water appears to be China's current strategy that keeps the overall bath lukewarm you will nevertheless scald some people and get iced by others. The mix will be off. Of course I always encourage peace and like the idea of free markets. Yet, as we are mixing war, ideology, and business all into the same pot the taste of the soup might turn out very well or might be horrendous. 

The things the U.S. can do to put itself in the best economic positions are to maximize human capital through tying American/"American" into a single national conception, ensure innovation and development are a priority, create broad based opportunities (versus "the connected"), develop clusters to solve specific problems, and politically learn how to deal with each other to maximize outcomes. 

(I know! I know!....probably better to just discard quickly. Let me also add a message of complete lunacy that patriotism is not race or religion anchored and we must bump up our universal conceptions of democracy to meet the next challenges we are likely to face as a nation. Its difficult to change the way we think but sometimes through challenge we have an opportunity to get better. This may fast be becoming the case. I think we are going to make it! Wait wait! Probably not a good idea!)

Russia Oil Dependence, G7 & Tech & Geo, China Supports Russia,  The Iron Curtain, Putin & Xi Meet, Biggest Threats, Changing Military Nature, Why U.S. Must Develop