China is A Dictatorship Yet Why They Are One of America’s largest creditors?

National emblem of the People's Republic of China

National emblem of the People's Republic of China (Photo credit: Wikipedia)

China currently owns more than $1 trillion dollars in bonds, notes etc. America promotes democratic values abroad while doing business with nations completely antithetical to democracy and human rights. Though American principles emit freedom and choice, America’s interests overseas mostly deal with dictators and despot nations. The United States is subservient to the interest of Saudi Arabian oil. China holds a large portion of debt and American interests are based on Chinese credit. If China decided to no longer deal with the U.S. regarding credit, the nation would be in a world of trouble. This is not likely to happen, but it only shows how vulnerable the nation is to foreign interests.


The United States should not shun China because of its human rights abuses and lack of freedom for its citizens. However, it does place the United States in a precarious position. Leaders cannot outwardly criticize China since they are such a large holder of American debt. President Obama has gotten much tougher with China regarding trade policies, but continues to do business with China over credit matters. This opens doors to outside critiques who say that the U.S. speaks out of one side of its mouth.


The American government has been silent on Chinese censorship, the one child policy and the issue of Tibet. China manipulates in currency and trade policies to thwart American interests. Though Obama has spoken out against his, little has been in done in actual countering counterfeited goods and dubious trade policies. Donald Trump, who is considered a joke is many political circles, does make a valid point regarding China taking advantage of the United States.


China is able to get away with much more because Chinese officials know that America cannot afford to isolate or ignore China. China is a rising economy and could very well surpass America’s economy in the next few decades. The fact the China is a holder of over a trillion dollars in debt only shows how much China has the upper hand. Though American leaders do not see it this way, it only shows how dependent America has become on overseas credit. Furthermore, the fact that many companies have shipped American jobs to China is another aspect in which China gains the upper hand.


Ugandan anti-corruption sign

Ugandan anti-corruption sign (Photo credit:

Though America is vulnerable to Saudi Arabia, another nation that has horrendous human rights abuses and restrictions on personal freedom, let’s focus on China. The Chinese are known for their arbitrary executions of people convicted on minor offenses such as corruption. There are mobile death vans that execute so called criminals and harvest their organs on the black market.


Why are executions so arbitrary in China?


There are several theories. Since China is an atheist state, there is little value on human life as opposed to religious nations that may value life. Also, China has a nation of over a billion people and life is more expendable than nations that have smaller populations. Regardless of the reason why executions and forced abortions are so common in China, they run contrary to the values of the United States. There are far more abortions in China of girl infants than boys, and this will impact the male to female ratio in Chinese society in the future.


Censorship is also a major problem in China. China’s media is heavily restricted by a censorship administration that decides what content viewers can see online along with what types of foreign media that comes into Chinese society. Protest, dissent or protest is squelched heavily. There are no properly rights in China.


In Hunan provide, protester He Zhi Hua was killed by a steamroller when a local official ordered that construction workers run him over because he refused to move. The official that order the murder was never prosecuted or removed from post, but rather Chinese soldiers were sent to restore order and hush money was paid to the victim’s family. The fact the Chinese government took no action regarding a man’s death only shows how uncaring and brutal Chinese governance has become.


This is the very same government that is holding bonds and conducting business with the United States. What type of message does that send around the world? The U.S. was silent on the matter, largely because of the close ties to Chinese business interests. Despite the squashing of protest and dissent, there is an undercurrent of dissatisfaction regarding human rights violations and censorship.


It is one thing to have a productive relationship with China, but it is entirely another matter when America becomes dependent on Chinese credit. Founding fathers like George Washington warned of foreign entanglements, and American dependence on Chinese credit is something that affects America’s future. Though America’s reputation has been damaged in the past decade, when American officials speak the world still listens. It is hard for America to speak on Chinese abuses and censorship when the two nations are so intimately tied in investment matters.


Overall, it is harder for America to speak out against injustice in the world when the nation is so closely aligned with Chinese business interests. Throughout American history, officials have promoted the interests of dictators over democracy and choice. Hosni Mubarak and Moammar Khadafi are just some of the dictators that America supported in the Middle East which has resulted in an Arab Spring where citizens are demanding democracy and elections.


The United States needs to reevaluate its foreign policy and the leaders that American officials deal with overseas. In other words, it is time the United States price what American values preach. Choosing which dictators are the enemies which ones are mutual allies has not worked. It is important for the U.S. to set an example and not become so embedded with despot nations. Minimizing business dealings with China and other nations that violate human rights will send a signal to the world that the U.S. promotes democracy and freedom. Democracy is not spread to the world through force, but through setting an example and speaking out on matters of injustice.

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