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By Doug Casey
International Man
August 15, 2025
International Man: Recently, we’ve seen the “Yellow Peril” escalate across media and politics. What’s your take on the sentiment towards China?
Doug Casey: There’s always been a fear of China, perhaps starting with the immigration of laborers to California in the 1860s, then Sax Rohmer’s Fu Manchu novels. It’s logical enough. China has always seemed alien to Americans—their language, their script, their clothing style, and their congregating together in Chinatowns. They were painted as inscrutable and devious. Mao’s Communist ideology and the Korean War, which was really a war between the U.S. and China, certainly didn’t help.
Now China’s newfound prosperity is seen as a threat. China, however, isn’t the problem; it’s the U.S. government’s attitude towards China, combined with visible U.S. decline, while China is advancing rapidly on every front. So, the U.S. Government is trying to suppress China and throw up roadblocks to its progress with sanctions and tariffs, while denying it imports and trying to pen it up militarily. As with Russia, the U.S. is provoking them on many fronts.
However, the current U.S. policy is not only doomed to failure, but is actively counterproductive.
International Man: Is China truly an existential threat to the U.S., economically, militarily, or ideologically, or is it just a manufactured enemy?
Doug Casey: China’s huge, with 1.3 billion people. And over the last 40 years, it has advanced from a poverty-stricken, even primitive, country to a very prosperous one. They’ve risen from nowhere to the top rung economically, scientifically, and militarily.
Why? Because Deng Xiaoping radically altered their economic system in 1980, by dumping communism for capitalism, while maintaining the charade that China was still Communist. Although it’s still called Communist China, the country is totally different from what it was in the days of Mao. It’s no longer communist. It’s simply an authoritarian country—not so different from most others in the world at this point. The Communist Party is nothing but a control mechanism, essentially a scam inuring to the sole benefit of its members.
Communism is an economic system where the State owns and controls everything. China is actually a model of state capitalism, also known as fascism, a marriage of the State and corporate interests. The fact is that (this will come as a shock to many) China is more free-market-oriented than most of the world’s countries. That’s certainly true of Europe these days. In fact, the Europeans are even talking about imitating China’s more regressive policies.
Will China keep growing at the rate they have been? It’s possible, but unlikely. For one thing, their government is retreating from the near laissez-faire policies that made them prosperous. For another, the huge savings of the average Chinese have been malinvested by their banks due to political pressures, with potentially catastrophic consequences. For another, their culture appears to have become less hard-working, softer, and more corrupt.
Are they a military threat? They’re approaching parity now, and at the rate they’re accelerating, they could be way ahead in a decade. But that doesn’t mean they’re necessarily a threat. That’s because the days of invading other nations to steal the gold, the artwork, and enslave the population are long gone. That’s apart from the fact that we don’t know what the nature of the next war will be. In other words, it’s foolish of Trump to bankrupt the U.S. on speculative military spending, while provoking the Chinese.
Do they want to start a nuclear war with the U.S.? No, they have nothing to gain from that. Can they invade the U.S.? No, that’s almost impossible to do. The U.S., not China, is the problem. It can see China rising rapidly while it’s declining, and may decide to strike while it still has the balance of power. The U.S. may use the internecine dispute between Beijing and Taipei, which is none of our business, as an excuse for starting a war.
The U.S. government is increasingly bankrupt. War power is built on economic power, and the U.S. government is not only bankrupt but becoming more so with Trump’s 20% increase in military spending. Meanwhile, it’s falling behind China in science and technology, which, like the military, depends on economic strength. I’m afraid the U.S. is like Wylie Coyote, who thinks he’s on firm ground chasing a Chinese Roadrunner, while he’s walking on air.
China is a non-threat. The problem is the U.S. itself; it’s collapsing from within and blaming China for its own problems.
International Man: During the previous Trump presidency, Democrats painted Russia as an omnipresent threat, almost cartoonishly so. Are Republicans now doing the same with China—and if so, why do both parties need an external boogeyman?
Doug Casey: Yes. After Russia, China is the Devil of the Month. Iran, Mexico, India, and maybe Turkey can join the party as needed. It’s starting to look like the U.S. against the rest of the world. It’s not just Trump, with his unpredictable whims and schizophrenic policy decisions. It’s the lack of any moral core in the U.S., which no longer stands for any principles. The U.S. Government is like a rickety, overly complex Rube Goldberg machine. The Deep Staters who control it want to cannibalize its parts as the thing comes unglued.
This is the nature of the State as an entity. The State, government, doesn’t create anything and never has. Its main activity throughout history has been war and conquest. It’s quite correct to say that war is the health of the State.
The kind of people who are drawn to government aren’t noble altruists. They’re mainly interested in building their personal wealth and power. And since the State is their playpen, they naturally want to make it a bigger playpen.
Both the Republican and the Democratic parties are equally guilty, and there’s no longer much difference between them.
What’s true of both parties is that, barring the senility of a Joe or dissipation on the scale of a Hunter, their leaders all become incredibly rich. The Clintons are worth hundreds of millions of dollars. The Obamas are probably worth $100 million. And their minions get even richer on government spending, as do well-positioned foreigners like Zelensky, who’s gone from being a second-rate actor to being a billionaire. As he has his sycophants.
International Man: What’s really going on behind this aggressive posture toward China? Is it trade, currency, tech dominance, or perhaps something deeper—like fear of a multipolar world?
Doug Casey: You might recall that Japan was the bogeyman before China. In the 80s, it seemed like they were going to take over the world. Now, China is being promoted as a dangerous threat. The fact is that they produce loads of consumer goods cheaper and better than in the U.S. The solution is not to bash China, but to free American entrepreneurs the way Deng freed Chinese entrepreneurs.
I don’t see them as a threat. I’d like to see the whole world be as prosperous as China. Will the Chinese currency, the yuan, replace the U.S. dollar? Unlikely. What’s certain is that the dollar is dying. Again, the problem isn’t the Chinese. The dollar needs to be replaced because it’s being inflated out of existence. The dollar, not soybeans or aircraft, is our major export these days. Of course, everyone wants to dump it. Instead of solving the problem, Trump prefers to threaten anybody who wants to dump dollars.
International Man: You’ve spoken about the collapse of empires and the cycles of history. Where are we now, and what role does the China narrative play in the story of America’s decline?
Doug Casey: The best way to avoid what’s known as “the fate of empires” is simply not to become an empire. That’s the real problem. The U.S. has turned from a country whose population was cohesive because they shared principles and traditions, into a multicultural domestic empire. And it’s an international empire too, with approximately 800 military bases in over 100 countries around the world. The U.S. has changed from a loosely governed middle-class republic into an empire with an ever more powerful executive.
And despite what passes for military power, with its gold-plated weapons and 800 bases, the U.S. really doesn’t have any allies. It only has parasitic client states.
None of this is China’s fault. But since the U.S. has become a danger to the rest of the world, you can expect other countries to take advantage of its problems.
Other countries still fear the U.S., but they no longer respect it.
Reprinted with permission from International Man.
www.lewrockwell.com
International Man
August 15, 2025
International Man: Recently, we’ve seen the “Yellow Peril” escalate across media and politics. What’s your take on the sentiment towards China?
Doug Casey: There’s always been a fear of China, perhaps starting with the immigration of laborers to California in the 1860s, then Sax Rohmer’s Fu Manchu novels. It’s logical enough. China has always seemed alien to Americans—their language, their script, their clothing style, and their congregating together in Chinatowns. They were painted as inscrutable and devious. Mao’s Communist ideology and the Korean War, which was really a war between the U.S. and China, certainly didn’t help.
Now China’s newfound prosperity is seen as a threat. China, however, isn’t the problem; it’s the U.S. government’s attitude towards China, combined with visible U.S. decline, while China is advancing rapidly on every front. So, the U.S. Government is trying to suppress China and throw up roadblocks to its progress with sanctions and tariffs, while denying it imports and trying to pen it up militarily. As with Russia, the U.S. is provoking them on many fronts.
However, the current U.S. policy is not only doomed to failure, but is actively counterproductive.
International Man: Is China truly an existential threat to the U.S., economically, militarily, or ideologically, or is it just a manufactured enemy?
Doug Casey: China’s huge, with 1.3 billion people. And over the last 40 years, it has advanced from a poverty-stricken, even primitive, country to a very prosperous one. They’ve risen from nowhere to the top rung economically, scientifically, and militarily.
Why? Because Deng Xiaoping radically altered their economic system in 1980, by dumping communism for capitalism, while maintaining the charade that China was still Communist. Although it’s still called Communist China, the country is totally different from what it was in the days of Mao. It’s no longer communist. It’s simply an authoritarian country—not so different from most others in the world at this point. The Communist Party is nothing but a control mechanism, essentially a scam inuring to the sole benefit of its members.
Communism is an economic system where the State owns and controls everything. China is actually a model of state capitalism, also known as fascism, a marriage of the State and corporate interests. The fact is that (this will come as a shock to many) China is more free-market-oriented than most of the world’s countries. That’s certainly true of Europe these days. In fact, the Europeans are even talking about imitating China’s more regressive policies.
Will China keep growing at the rate they have been? It’s possible, but unlikely. For one thing, their government is retreating from the near laissez-faire policies that made them prosperous. For another, the huge savings of the average Chinese have been malinvested by their banks due to political pressures, with potentially catastrophic consequences. For another, their culture appears to have become less hard-working, softer, and more corrupt.
Are they a military threat? They’re approaching parity now, and at the rate they’re accelerating, they could be way ahead in a decade. But that doesn’t mean they’re necessarily a threat. That’s because the days of invading other nations to steal the gold, the artwork, and enslave the population are long gone. That’s apart from the fact that we don’t know what the nature of the next war will be. In other words, it’s foolish of Trump to bankrupt the U.S. on speculative military spending, while provoking the Chinese.
Do they want to start a nuclear war with the U.S.? No, they have nothing to gain from that. Can they invade the U.S.? No, that’s almost impossible to do. The U.S., not China, is the problem. It can see China rising rapidly while it’s declining, and may decide to strike while it still has the balance of power. The U.S. may use the internecine dispute between Beijing and Taipei, which is none of our business, as an excuse for starting a war.
The U.S. government is increasingly bankrupt. War power is built on economic power, and the U.S. government is not only bankrupt but becoming more so with Trump’s 20% increase in military spending. Meanwhile, it’s falling behind China in science and technology, which, like the military, depends on economic strength. I’m afraid the U.S. is like Wylie Coyote, who thinks he’s on firm ground chasing a Chinese Roadrunner, while he’s walking on air.
China is a non-threat. The problem is the U.S. itself; it’s collapsing from within and blaming China for its own problems.
International Man: During the previous Trump presidency, Democrats painted Russia as an omnipresent threat, almost cartoonishly so. Are Republicans now doing the same with China—and if so, why do both parties need an external boogeyman?
Doug Casey: Yes. After Russia, China is the Devil of the Month. Iran, Mexico, India, and maybe Turkey can join the party as needed. It’s starting to look like the U.S. against the rest of the world. It’s not just Trump, with his unpredictable whims and schizophrenic policy decisions. It’s the lack of any moral core in the U.S., which no longer stands for any principles. The U.S. Government is like a rickety, overly complex Rube Goldberg machine. The Deep Staters who control it want to cannibalize its parts as the thing comes unglued.
This is the nature of the State as an entity. The State, government, doesn’t create anything and never has. Its main activity throughout history has been war and conquest. It’s quite correct to say that war is the health of the State.
The kind of people who are drawn to government aren’t noble altruists. They’re mainly interested in building their personal wealth and power. And since the State is their playpen, they naturally want to make it a bigger playpen.
Both the Republican and the Democratic parties are equally guilty, and there’s no longer much difference between them.
What’s true of both parties is that, barring the senility of a Joe or dissipation on the scale of a Hunter, their leaders all become incredibly rich. The Clintons are worth hundreds of millions of dollars. The Obamas are probably worth $100 million. And their minions get even richer on government spending, as do well-positioned foreigners like Zelensky, who’s gone from being a second-rate actor to being a billionaire. As he has his sycophants.
International Man: What’s really going on behind this aggressive posture toward China? Is it trade, currency, tech dominance, or perhaps something deeper—like fear of a multipolar world?
Doug Casey: You might recall that Japan was the bogeyman before China. In the 80s, it seemed like they were going to take over the world. Now, China is being promoted as a dangerous threat. The fact is that they produce loads of consumer goods cheaper and better than in the U.S. The solution is not to bash China, but to free American entrepreneurs the way Deng freed Chinese entrepreneurs.
I don’t see them as a threat. I’d like to see the whole world be as prosperous as China. Will the Chinese currency, the yuan, replace the U.S. dollar? Unlikely. What’s certain is that the dollar is dying. Again, the problem isn’t the Chinese. The dollar needs to be replaced because it’s being inflated out of existence. The dollar, not soybeans or aircraft, is our major export these days. Of course, everyone wants to dump it. Instead of solving the problem, Trump prefers to threaten anybody who wants to dump dollars.
International Man: You’ve spoken about the collapse of empires and the cycles of history. Where are we now, and what role does the China narrative play in the story of America’s decline?
Doug Casey: The best way to avoid what’s known as “the fate of empires” is simply not to become an empire. That’s the real problem. The U.S. has turned from a country whose population was cohesive because they shared principles and traditions, into a multicultural domestic empire. And it’s an international empire too, with approximately 800 military bases in over 100 countries around the world. The U.S. has changed from a loosely governed middle-class republic into an empire with an ever more powerful executive.
And despite what passes for military power, with its gold-plated weapons and 800 bases, the U.S. really doesn’t have any allies. It only has parasitic client states.
None of this is China’s fault. But since the U.S. has become a danger to the rest of the world, you can expect other countries to take advantage of its problems.
Other countries still fear the U.S., but they no longer respect it.
Reprinted with permission from International Man.
China Hysteria: Manufactured Threat or Inevitable Rival? - LewRockwell
International Man: Recently, we’ve seen the “Yellow Peril” escalate across media and politics. What’s your take on the sentiment towards China? Doug Casey: There’s always been a fear of China, perhaps starting with the immigration of laborers to California in the 1860s, then Sax Rohmer’s Fu...
www.lewrockwell.com
