CHINA CAN NO LONGER AFFORD WORLD DOMINATION

There’s just one flaw in Xi Jinping’s plans for global economic conquest. It’s that China has run out of money. The $8 trillion headline figure for the New Silk Road is romantic fiction.
The Belt and Road – as it has become known since maritime links were added to the original Marco Polo caravan route – is China’s plan of infrastructure development and investments in 152 countries and international organizations. Yes, 152.
It may have made financial sense when China was running a fat current account surplus. This reached 10% of GDP in the final stages of the export boom from 2004 to 2008.
Today, China’s current account surplus has essentially vanished. The International Monetary Fund thinks it will be 0.5% of GDP this year. It will then go progressively negative through the early 2020s.














