In his latest attempt to spin a narrative, President Joe Biden claimed his foreign policy had somehow stunted China’s economic rise. Nice try, Joe, but anyone paying attention knows that’s far from the truth. The reality? China’s economic setbacks are a result of their own doing, not some miraculous feat by the Biden administration.
For years, we were told that China was on the fast track to overtake the United States as the world’s leading economy. Thanks to the misguided policies of Chinese leader Xi Jinping, that scenario seems increasingly unlikely. Xi’s deep-seated mistrust of entrepreneurs and economic reform has dragged China back toward a rigid, socialist economic model. This approach echoes the days of Mao, with the Chinese Communist Party—and Xi himself—dictating the country’s economic direction through central planning. Xi prioritizes national security over economic growth and values loyalty over actual competency.
Take it from Minxin Pei, a Claremont McKenna College professor and renowned China expert. He pointed out that Xi’s centralization of power has caused an economic crisis of confidence not seen since the late ’70s, following Mao’s death. China’s economic growth, which boomed in the ’90s and early 2000s, has dwindled to single digits since Xi took the helm in 2013—long before Biden even dreamed of the presidency.
Let’s talk about the investors. Xi’s heavy-handed crackdown on tech companies and the mysterious “disappearances” of prominent tycoons haven’t just dampened entrepreneurial spirit and caused billions of dollars in investor losses. This climate of fear and uncertainty has led to a significant exodus of foreign firms and investors, who now find profiting increasingly challenging in Xi’s China.
Xi’s meddling in the property market also can’t be overlooked. The collapse of Evergrande, China’s largest property company, has left countless housing projects unfinished and sent housing prices plummeting. Given that the bulk of Chinese household wealth is tied up in real estate, this debacle has severely undermined consumer confidence and ramped up the risk of deflation.
Add to this mess the fallout from Xi’s draconian “zero Covid” policy, which only ended after widespread protests in late 2022. This policy subjected millions to harsh lockdowns and brought businesses to their knees. The youth unemployment rate hit a staggering 22% in June 2023, prompting the government to stop publishing the data to avoid public panic. And let’s not forget China’s demographic crisis, with the population declining for the first time in decades. All these factors have stunted China’s economic growth, which limped at just 3% in 2022—the worst since 1976.
Biden’s self-congratulation over China’s economic woes is laughable. His administration’s China policy has been anything but coherent or effective. While Biden kept some of Trump’s more brutal policies, like blocking certain Chinese companies over human rights abuses, his administration simultaneously encouraged American businesses to keep investing in China. Commerce Secretary Gina Raimondo’s visit to China last year, where she urged American firms to continue their investments, highlights this contradiction.
Biden likes to tout his restrictions on semiconductor exports to China, but these measures have been half-hearted at best. China still has access to advanced AI chips from companies like Nvidia, undermining any real impact these restrictions might have had. Meanwhile, Biden’s green energy push has only increased U.S. dependency on China, given Beijing’s dominance in the supply chains for solar panels, wind turbines, and EV batteries—all thanks to their exploitation of slave labor and vast coal reserves.
And then there’s Taiwan. Biden’s off-the-cuff remarks about defending Taiwan from a Chinese invasion have been repeatedly walked back by his staff, creating confusion and eroding credibility. Meanwhile, China’s military aggression has only ramped up, with increased maneuvers in the South China Sea and confrontations with U.S. and allied forces.
Biden’s weakness has emboldened Xi, who seems comfortable escalating tensions with the U.S. Take the Chinese spy balloon incident, where a balloon floated over the continental U.S. before being shot down days later. Or the recent revelation that China has likely upgraded its spying facilities in Cuba. This same week, Russian and Chinese warplanes were intercepted near Alaska—a clear message to the U.S. and Canada.
Despite China’s economic troubles, its military continues to expand rapidly. The 2023 China Military Power Report from the Department of Defense notes that China has over 500 operational nuclear warheads and is swiftly modernizing its military capabilities. And let’s not forget China’s ongoing support of Russia, sustaining Putin’s war in Ukraine.
So, when Biden claims his China policy is a success, it’s nothing more than a desperate attempt to distract from his administration’s failures. As we approach the next election, it’s crucial to scrutinize Biden and Vice President Kamala Harris, who’s poised to inherit this mess. Her track record on foreign policy, especially concerning China, needs to be thoroughly examined.
America deserves leadership that truly understands and can effectively address the threats posed by China—not more empty boasts and contradictory policies.
