The Chinese state media outlet Global Times condemned “Bidenomics” in a column on Thursday predicting that astronomical government spending would “significantly raise inflation expectations and the federal deficit,” hurting Americans and exacerbating situations like the ongoing United Auto Workers (UAW) strike.
The Communist Party propaganda outlet specifically identified leftist President Joe Biden’s focus on offering financial windfalls to companies for electric vehicle (EV) and other “green” energy projects as corrosive to the American economy, suggesting that attempting to develop an EV industry in America at all was inadvisable. The Global Times omitted the fact that China holds a dominant position in global lithium and other rare-earth mineral processing, meaning it has a virtual monopoly on the manufacture of EV batteries and other “green” technology that would be threatened by the development of that industry in America.
“It is true that the Biden administration has been actively investing in and subsidizing the domestic electric vehicle industry, encouraging companies to source key materials within its borders and attracting manufacturing back,” the Global Times narrated, “but the UAW strike may show why the US government’s efforts may not be suitable for Americans and point to the ongoing de-industrialization trend in the US.”
The state newspaper described America as being trapped in a “storm of de-industrialization” under Biden, fueled in large part by inflation.
“‘Bidenomics’ is characterized by a significant increase in government expenditure to support economic performance. However, this approach will significantly raise inflation expectations and the federal deficit,” the state outlet predicted. Rather than blaming the failures of “Bidenomics” on the outrageous government spending and handouts to corporations, however, the Chinese outlet branded Biden’s faults as a sin of “economic nationalism.”
Biden himself appeared to contradict the Global Times‘ assessment of his alleged prioritizing of “economic nationalism” in his speech to the United Nations General Assembly on Tuesday, in which he insisted that he sought to continue to allow China influence in the American economy.
“When it comes to China, I want to be clear and consistent. We seek to responsibly manage the competition between our countries so it does not tip into conflict. I’ve said, ‘we are for the de-risking, not decoupling, with China,’” Biden assured his listeners. “We also stand ready to work together with China on issues where progress hinges on our common efforts. Nowhere is that more critical than the accelerating climate crisis.”
The Global Times condemned Biden’s speech as “cliché” and “hollow” the next day.
Addressing the UAW strike in the article published on Thursday, the Chinese government mouthpiece again appeared to blame Biden for the workers’ woes.
“The union’s demands showed the hardship caused by US inflation to manufacturing workers and also that the Biden administration’s efforts to promote manufacturing reshoring simply didn’t improve the lives of industrial workers,” the newspaper observed, again describing the billions of dollars invested in major corporations to promote “green” energy as an attempt at “reshoring” or competing with China.
In reality, Biden’s spending has resulted in outrageous profits for the heads of multinational corporations with major operations abroad, including in China. General Motors (GM) CEO Mary Barra, for example – who runs one of the “Big Three” companies the UAW is striking against – reportedly earned $29 million in 2022, fueled by federal government spending through projects such as the “Inflation Reduction Act” and “American Rescue Plan Act.”
The UAW is currently engaged in an ongoing strike at GM, Stellantis, and Ford plants, which began on September 15 and does not appear to be close to resolution at press time. The workers are demanding contracts from their manufacturers that address the astronomical costs of living as a result of inflation in the industrial midwest, where most car manufacturing plants in America are located.
“There have been clear winners and losers and the same people who’ve always won, the corporate elite and the billionaire class, seem to think they can keep calling the shots,” UAW president Shawn Fain said in a video published by the union in July. “The ‘Big Three’ automakers, Ford, General Motors, and Stellantis, are taking billions of dollars in government subsidies to go electric. But those benefits aren’t trickling down to UAW members.”
Among the UAW’s demands is a restoration of contracts that tie salaries to inflation, which used to be the status quo before the 2008 economic crisis. The union is also demanding a 40-percent wage increase over four years, as well as respect for the current jobs in the industry as their corporations seek government subsidies tied to the “green transition,” particularly the billions that inflated salaries like Barra’s through projects such as the “Inflation Reduction Act” while resulting in no significant improvement in the situation of the workers that keep the companies productive.
President Joe Biden, center, holds hands with General Motors chairman and CEO Mary Barra, second from left, as he talks with others during an event on clean cars and trucks on the South Lawn of the White House, Aug. 5, 2021. (Evan Vucci/AP)
The Biden administration has largely abstained from any material role in the conflict between the union and the companies. On Wednesday, Biden announced the creation of a “Partnership for Workers’ Rights” with socialist Brazilian President Luiz Inácio Lula da Silva, focused on generally defending worker rights around the world. In his remarks alongside Lula, Biden insisted that his government would continue to promote “green” energy projects.
“We will advance a worker-centric clean — a worker-centered clean energy transition. Folks, as I’ve told labor from the very beginning: When I think of climate change, I think of jobs,” Biden declared. “Jobs.”