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IPFS News Link • Economy - International

National Self-Reliance Is On the Rise: China and the U.S.

•, By Charles Hugh Smith

This week's focus is on self-reliance, a topic of increasing relevance than is more complex that it may seem.

The flip side of the decline of hyper-globalization is the rise of national self-reliance. We can see this dynamic expanding in real time across the globe, particularly in China and the U.S.: though still bound by trillions of dollars / RMB in investment and trade, the two nations are seeking to balance their dependency on the other by increasing their self-reliance with their own resources and technologies.

This reduction of a potent source of instability (dependency) in favor of national self-reliance is a positive development. Just as household self-reliance doesn't mean self-sufficiency (something I explain in Self-Reliance in the 21st Century), national self-reliance doesn't mean self-sufficiency: trade and diplomatic ties with other nations are beneficial, but it doesn't serve anyone's interests to be so beholden to other nations that blackmail become a temptation.

But withdrawing from the world has risks, too. The ideal is a dynamic balance between national interests and global ties that benefit everyone, that is, ties that nurture cooperation and global stability.

In other words, national self-reliance is not a substitute for global engagement and cooperation, it is a stabilizing force that enables beneficial global ties. Dependencies are sources of instability and risk, as each side is under pressure to preserve whatever is viewed as essential, and this tends to increase the risk of rash decisions and actions.

The ideal global arrangement is a transparent flow of ideas and information that enables every participant to adapt to changing conditions. From this perspective, the risk isn't that China seeks to become less dependent on Western technology, i.e. becoming more self-reliant; the risk is China blocking the flow of ideas from outside sources with the Great Firewall. (My sources report no U.S. news sites are available in China except a handful of anti-establishment sites.)

1 Comments in Response to

Comment by NakedSheriff
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This is dumb. Clearly globalization benefits everyone and "self-reliance" is a path to distraction. How are Austeian like Rockwell forgetting hoe economics works? It's like the only people they are fooling with their paleo strategy is themselves .