Reality denial and western hypocrisy on China

July 21, 2026

China’s success is not at all because of state subsidies or unfair practices, nor because of their superior integration of supply chains. It is astonishing that after decades of Western businesses migrating to China to combine their high productivity with local cheap wages – the source of the massive competitiveness of Chinese production and the enormous outflows of profits back to Western shareholders – that people are so ignorant or so cynical to claim foul play when Chinese businesses are now taking advantage of this. But Germany has used state intervention for 30 years to attack workers and drive wages below productivity in an attempt to regain ‘competitiveness’: this killed investment, caused the eurozone crisis and has now lead Germany to its longest post-war recession. This is a Germany that has maintained export surpluses larger than China relative to GDP – even larger absolutely for a few years in the mid-2010s! And now they are complaining of foul play while they have forced the rest of the world into massive trade deficits. Europe is on its knees because of an extreme anti-public debt ideology and a hawkish central bank that has strangled every recovery of domestic demand growth, fearing “inflation”.