254 - The Yale US-China Forum: Slavoj Žižek, Richard Wolff, Yannis Varoufakis, Robin Visser, Yascha Mounk, Pei Wang, Daniel Mattingly

6 Jul 2025 · 2 h 4 min · 43 chapters

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In short

A Yale US–China Forum panel debating why a “new Cold War” is emerging between the United States and China, framed through geopolitics, sanctions/trade, and political economy. Speakers argue the conflict is driven less by Taiwan than by structural shifts in capitalism (especially after 2008), and by competing models of governance and technological power. They also discuss Europe’s shrinking strategic role and whether Europe can avoid becoming a “tourist destination” by linking with China.

Guests (backgrounds)

  • Slavoj Žižek (philosopher; Marxist cultural critic; appears virtually due to illness).
  • Richard Wolff (Marxist economist; taught at Yale; focuses on class struggle and workplace democracy).
  • Yanis Varoufakis (economist; argues about “techno-feudalism” and dollar/financial power).
  • Robin Visser (political scientist; empirical social-science research on perceptions of China/US).
  • Yascha Mounk (political commentator; discusses political models and democracy vs authoritarianism).
  • Pei Wang (scholar; research on China’s political economy and society).
  • Daniel Mattingly (political scientist; studies China’s authoritarian party-state and US–China relations).

Key claims

  • Trade wars are class wars; US deficits recycle capital into Wall Street, suppressing wages.
  • After 2008, “cloud capital” (Silicon Valley and China’s platforms) concentrates power and enables behavior control and “cloud rents.”
  • US-China rivalry is a struggle over who controls the next economic/financial form; Europe is geopolitically marginalized.
  • China’s system is authoritarian/Leninist but can be seen as responsive and economically dynamic.

Notable examples

  • Orwell’s “three imperial spheres” analogy (US/Russia/China).
  • US sanctions/CHIPS Act and Huawei/AI progress (e.g., DeepSeek).
  • WeChat and China’s central-bank digital currency as models for seamless money transfers.
  • CGTN clips shifting global attitudes toward China’s political system.

Written by AI. May contain mistakes. Listen to the episode to check what was said.

Chapters

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Introduction to the Forum

0:04 to 0:56

The hosts introduce the forum topic and participants.

“It can help you with practically anything on the web, like restoring a vintage motorcycle from a 50-page restoration block, or finally break down that long article you've had open for weeks.”

Setting the Stage for Discussion

0:56 to 2:10

Discussion of Slavoj Žižek's pre-recorded message and the forum's focus.

“Why is there a new Cold War between the United States and China?”

Slavoj Žižek on Geopolitical Dynamics

2:10 to 3:19

Žižek discusses current geopolitical tensions and historical context.

“But at the same time, he does deliver some extremely insightful comments about the future, the world, and China's role in it.”

The Role of Superpowers

3:19 to 5:45

Analysis of the dynamics between superpowers like the U.S., Russia, and China.

“We are now in a situation which strangely echoes the world described by George Orwell in his 1984.”

Europe's Position in Global Politics

5:45 to 9:19

Žižek explores Europe's geopolitical role and its relationship with China.

“I think it's quite reasonable to argue that China has a certain right to Taiwan, much more than United States to Panama or to Canada.”

The Future of Europe and China

9:19 to 11:02

Discussion on the potential future alliance between Europe and China.

“I think if this happens, maybe we can avoid our neo-feudal future, which is otherwise our fate.”

Janis Varoufakis on Trade Wars

11:02 to 13:38

Varoufakis introduces his views on trade wars and class struggles.

“Janis, since we know it's very late for you and you're calling in from Europe, which we're extremely thankful for, by the way, we would love to hear your opening statement first.”

The U.S. Trade Deficit Explained

13:38 to 14:03

Discussion on the implications of the U.S. trade deficit in global economics.

“The trade deficit of the United States, which now Donald Trump considers to be a great threat, but I'll come to that in a minute.”

The Flow of Capital and Its Effects

14:03 to 16:42

Explore how foreign capital influences the U.S. economy and class structure.

“And those dollars were then returning, about 70 % of them came back to Wall Street.”

Financialization and Neoliberal Ideology

16:42 to 18:33

Understand the role of financialization and neoliberalism in economic bubbles.

“The second point I wish to make, speeding up my presentation so as not to exceed my time limits and simply to offer a warm up for the discussion.”
Show all 43 chapters

The Rise of Cloud Capital

18:33 to 21:03

Learn about cloud capital's transformation of economic power dynamics.

“And the owner of that cloud capital has a remarkable capacity of directly modifying people's behavior in order to create digital victims like in the United States, It's Amazon in China, Alibaba.”

U.S.-China Relations and Cloud Finance

21:03 to 23:29

Examine the implications of cloud capital on U.S.-China tensions.

“Why is there a new Cold War between the United States and China?”

China's Economic Strategy and the Dollar

23:29 to 25:55

Discuss China's position regarding the U.S. dollar and global finance.

“not because the West cannot develop a payment system like WeChat that is free of charge, but because Wall Street would not allow it.”

Ideological Clash Beyond Class Wars

25:55 to 28:06

Explore the philosophical implications of capitalism, democracy, and authoritarianism.

“It is clear to me and to many, this is not a monopoly that I have, that Trump wants, or his people, want to achieve simultaneously two aims, two tasks which seem contradictory, but they do not see them as contradictory.”

Ideological Confrontation Beyond Class Wars

28:06 to 29:50

Explore the ideological clash beyond class wars, particularly U.S. perspectives.

“For me to conclude, at the level of ideology, is this a clash in the end?”

Questioning U.S. Confrontation with China

29:50 to 30:59

Discuss the U.S. strategy against China and fears of nuclear escalation.

“I see in the corner a pair of zeros, which indicates to me that it is past midnight where you are in Europe.”

Analyzing U.S. Policy Towards China

32:23 to 36:30

Examine bipartisan U.S. policies towards China under Trump and Biden.

“that China needs to be challenged, both in terms of technological sanctions and in terms of a military encirclement.”

Marxism and Modern Economic Theory

36:30 to 42:03

Discuss the relevance of Marxist economic theory in today's political landscape.

“Now, of course, as we know, inside every administration, that's not different to the Trump administration, there is a conflict.”

Analyzing the Marxist Impact on Current Global Systems

42:03 to 56:00

Explore how historical Marxist theories relate to present-day dynamics between the US and China.

“There were similar efforts, as I'm sure many of you know, in many other parts of Europe around that time.”

Concerns About Global Conflicts

56:00 to 56:36

Discussion on the implications of global conflicts and historical context.

“China gets a lot from Venezuela, if you're not familiar with that, that he would apply it.”

Concerns About Global Conflicts

56:39 to 56:57

Discussion on the implications of global conflicts and historical context.

“It can help you with practically anything on the web, like restoring a vintage motorcycle from a 50-page restoration block, or finally break down that long article you've had open for weeks.”

Reflections on Class Struggle and Hail Mary Strategies

57:28 to 1:03:07

Analysis of class struggle, U.S. strategies, and economic prospects.

“And believe me when I tell you that the leadership in this country was under Biden and is under Trump capable.”

China and U.S. Relations: Perspectives and Perceptions

1:03:07 to 1:09:52

Exploration of public perceptions of China and the U.S. political systems.

“Because they are going to be sold down the drain whether that Hail Mary works or not.”

Understanding U.S.-China Political Competition

1:10:00 to 1:13:14

Explore the dynamics of political competition between the U.S. and China.

“And I think if it's on these terms, it potentially works in the favor of the United States.”

Xi Jinping's Political Philosophy

1:13:43 to 1:17:37

Analyze Xi Jinping's leadership and its impact on China’s political landscape.

“And I think that the system, you know, kind of mixes really three elements.”

The Ideological Landscape of U.S.-China Relations

1:17:37 to 1:24:00

Discuss the ideological dimensions of the U.S.-China rivalry and its historical context.

“form of competition between those countries, but it's very hard to think about the right frame within which to understand the nature of that competition that I think is what we're all trying to figure out at the moment.”

Challenges to Liberal Democracy

1:24:00 to 1:28:54

Explore the internal challenges faced by Western liberal democracies today.

“which may have a certain amount of appeal in parts of the Middle East, but which is facing real internal challenges of its own and which doesn't have any real appeal beyond the Muslim world.”

China's Internal Contradictions

1:28:54 to 1:31:43

Discuss the challenges China faces in managing its own internal issues.

“and it's not even military and economic competition from China in the first place.”

China's Internal Contradictions

1:33:47 to 1:34:39

Discuss the challenges China faces in managing its own internal issues.

“It can help you with practically anything on the web.”

Ideological Competition with China

1:34:54 to 1:37:59

Examine the philosophical and ideological aspects of US-China relations.

“And forgive me a little quip here, which is that China works reasonably well in practice, but it is a mess in theory.”

The Stakes in U.S.-China Competition

1:38:04 to 1:51:34

Explore the economic and civilizational stakes in U.S.-China relations.

“And I do appreciate Yanis's economic analysis about cloud capital, And I really appreciated Richard's concerns about nuclear weapons and the level of desperation felt in the U.S.”

Understanding Chinese Political Philosophy

1:51:34 to 1:52:00

Discuss the values of harmony in Chinese philosophy and its implications.

“You made so many of a very interesting and intellectually rigorous statement to us.”

Understanding China's Political Model

1:52:00 to 1:53:20

Explore how China's political model differs from historical Marxist nations.

“intellectually engaging lively statement about that and i particularly like like your idea of like each country each nation each has many has its own problem within and our priority is to find way to solve that.”

Understanding China's Political Model

1:53:24 to 1:53:47

Explore how China's political model differs from historical Marxist nations.

“Credit Karma keeps you ahead of the game.”

Leadership Archetypes: Hero and Father

1:53:47 to 1:55:52

Examine the contrasting leadership styles of the U.S. and China through archetypes.

“I already learned a lot from our distinguished panelists today.”

Cultural Reflections of Leadership

1:55:52 to 1:58:38

Delve into how cultural context shapes leadership archetypes and their implications.

“In the Confucian tradition, the archetype of father far surpassed that of a hero, a reflection of Confucianism's deep earring of a virtuous father figure.”

Negative Effects of Leadership Archetypes

1:58:38 to 2:03:27

Identify potential pitfalls of over-identifying with hero and father archetypes in leadership.

“society, learning is seen as the dominant domain of childhood.”

Emerging Leadership Styles

2:03:27 to 2:06:03

Discuss the future of leadership, integrating feminine principles for balanced governance.

“The sixth issue, though a bit more subtle but already extensively discussed in Jungian Psychology, Peter Pan Complex.”

The Integrative Leadership Style in Competition

2:06:03 to 2:06:26

Explore the concept of a leadership style that harmonizes emotional and intuitive traits.

“in spiritual domains such as religion and philosophy.”

The Hero Archetype in Modern Politics

2:06:26 to 2:06:54

Discuss the portrayal of political figures through the lens of archetypes, particularly the hero archetype.

“I should really thank you for adding this forum into a different and more, I would say, civilizational level.”

Chinese Fatherhood and Emotional Expression

2:06:54 to 2:07:27

Examine cultural norms around fatherhood in Chinese society and implications for emotional connection.

“He always craves others to see him as a very useful and a very not powerful in the sense like maybe like Chinese perceived in our own tradition, like the father should be silent.”

Psychological Archetypes and Chinese Leadership

2:07:27 to 2:08:17

Analyze the relationship between Lacanian psychoanalysis and the archetypal representations of authority in China.

“And here it comes to, I'm really so sorry, Slovo, we cannot be here today because there will be another debate between Lacanian and Yongian psychoanalysis.”

Invisible Power in Chinese Governance

2:08:17 to 2:08:51

Delve into the concept of leadership in China being powerful yet invisible, reflecting on the cultural context.

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Transcript

Automatic transcript. May contain errors.

0:01This episode is brought to you by Google Chrome. You think you know a browser, but Gemini and Chrome, that's new. It can help you with practically anything on the web, like restoring a vintage motorcycle from a 50-page restoration block, or finally break down that long article you've had open for weeks. Gemini and Chrome is here for it. Ready to make anything online make sense? There's no place like Chrome. Check responses set up required, compatibility and availability varies 18+. hey Chicago class it up with Crocs you know back to school is coming in fast so why wait to find your new fave footwear step into a local Crocs store and step into your new look try it style it make it yours because the right pair doesn't just show up it shows off first day fits handled

0:55He does deliver some extremely insightful comments about the future, the world, and China's role in it. Why is there a new Cold War between the United States and China? We are now in a situation which strangely echoes the world described by George Orwell. We remain the only country that ever dropped a nuclear bomb on other people.

1:33I'm glad that I have Carl here to handle the bulk of the content because this area is not my expertise. But I was hoping he was going to deliver the sad news that because of Slavoj's illness, he pre-recorded his message. So he's here virtually and from a different time today. But thankfully, in typical Slavoy fashion, even in his absence, he manages, I think, simultaneously to deliver some comic relief because he actually got the topic of the forum half wrong. He thought it was Europe-China relations, not U.S.-China relations. But at the same time, he does deliver some extremely insightful comments about the future, the world, and China's role in it.

2:26So without any more noise from me, I will hand this over to Virtual Slavoy. I'm really sorry that I cannot be there with you. And I mean it because the question you will be debating there. Relationship between Europe and China, I think, is not just one of the questions today like, I don't know, Europe and Russia, Europe and Africa, Europe and Latin America. It is the question today, a particular question today. on which everything hinders, maybe even our survival as a humanity depends on it. Why? Look where we are. We are now in a situation which strangely echoes the world described by George Orwell in his 1984.

3:35far. I don't think Orwell was correct in his description of new totalitarian society, but what I'm focusing on is his division of the world into three imperial spheres, imperial superpowers. Oceania, Euroasia, Euroasia, and Eastern Asia. Does this triad not fit, strangely, the true big powers that are emerging today? United States, Russia, and China. They are all imperial superpowers with each of them their own zone of influence. As we can see, they lead. United States want to control Panama, in a way even Mexico, not to mention Greenland and Canada. Russia wants to probably to expand well beyond just Ukraine.

4:56So Trump and Putin speak the same language, even when they disagree. They are both countries, United States and Russia, committing or participating in breathtaking crimes. Gaza, Ukraine. But I think China is here a little bit of an exception. Yes, we may have critical remarks on China and so on, and Chinese about Europeans. But first, China is not expansionist. Okay, Taiwan is a special question. I think it's quite reasonable to argue that China has a certain right to Taiwan, much more than United States to Panama or to Canada. But China is not expensive. Point two, very important. And China can serve, nonetheless, in spite of all the limitations of its democracy, as I will say this with all irony, as a better capitalist country, more creative and so on than the United States.

6:29Just remember the latest great Chinese breakthroughs in digitalization, medicine, electric cars, and so on, and so on. You know, the irony is that China, run by the Communist Party, knows better to exploit potentials of capitalism, this much celebrated lower-level capitalism, where a smaller country can play a crucial role. The United States and Russia are forming a new bloc, bipolar. They are both oligarchic states. Russia, more traditional oligarchy, United States, moving towards what Yanis Varoufakis calls techno-feudalism. Both are in no way a model of how. I will not even use the term democracy, but an open, creative society can survive.

7:47So what's the role of Europe here? Europe is still, don't underestimate it, economically relatively strong, especially if you take Europe as a unity, but it's politically, geopolitically marginalized. Okay, Europe can play its role alone. But I think if this happens, it will sooner or later become just a nice, if not something worse, just a nice tourist destination for wealthy visitors from America, from China, and so on. I think Europe deserves something much better. But I doubt if it will be able to use the opportunity. Now that Europe is deprived of the nuclear defense umbrella protection from the United States, it has to reassert its sovereignty, not only against Russia, but also against the United States.

9:06And here, the only chance that I see for Europe not remaining alone is a link with China. So I think in my vision of the things to come, either we are approaching this global neo-feudal order described by Orwell, with a couple of superpowers each controlling its domain, or Europe cannot do it alone, Europe will, in spite of all the misunderstandings, mutual criticism, find a link, commercial link, diplomatic link, and so on and so on, with China. I think if this happens, maybe we can avoid our neo-feudal future, which is otherwise our fate. So quite literally, our destiny is now very dark. Things spontaneously move towards neo-feudalism.

10:29I see the only way to prevent this in a big historical pact between Europe and China. It may be naive, it may sound utopian to you, but you know, for me, the true utopia is that without such new creative thinking, Europe can really survive. That's my position. Thank you. Janis, since we know it's very late for you and you're calling in from Europe, which we're extremely thankful for, by the way, we would love to hear your opening statement first. And then we'll open that up to some questions from the guests. And then we'll proceed from there. It's my great pleasure to be with you, with my friend Rick, with Wang, with Robin, with the spirit of Slavoj through the ether, and when we hear his voice, that will also be nice.

11:36Okay, let me kickstart this by making a point that those of us who have a Marxist disposition know intimately well, but which is a point that escapes most others because obfuscation is one of the par games that keep, you know, the vast majority of people in the dark. There is no such thing as trade wars, really. What we have is through trade and through sanctions, we have class wars. trade wars are class wars. And let me highlight this. They always were. But especially since the 1970s, this has been far more demonstrably so. Because after the end of Bretton Woods, from 1971 onwards, the United States succeeded in achieving a degree of hegemony that has never ever been founded on a deficit before.

12:48So the British Empire, the Dutch Empire, the great hegemons under feudalism and under capitalism until 1971, the hegemons needed to be in surplus. They needed to find a way of ensuring that they received more gold than they spent to the colonies. But the United States enters a period of a twin deficit around 1968, 1969. And then, you know, puts the foot on the floor. The accelerator is, it's exactly the opposite of what Germany did. Instead of going all a stadium in order to rein in a deficit, both deficits ballooned and have been ballooning ever since. And their hegemony has been arising as a result of that.

13:35But how has this been achieved? It's really very simple. The trade deficit of the United States, which now Donald Trump considers to be a great threat, but I'll come to that in a minute. The trade deficit of the United States operated like a huge vacuum cleaner, sucking into the territory of the United States, the net exports of Germany, of Japan, and of course, later, much more so China. And they were being paid for these deficits with IOUs called US dollars. And those dollars were then returning, about 70 % of them came back to Wall Street. And three things happened with these dollars. One was U.S.

14:17treasuries were being purchased. So effectively, the capitalists of Germany, Japan, and China were financing the American state, the American army, the American deficits. The second thing that happened was some shares were being purchased, but very limited because the United States government never allowed foreigners to expand into the corporate sectors that were to be kept within the realm of American financial capital. And massively, the third realization of those foreign capitalist profits was real estate. So, American rentiers were laughing all the way to the bank because of the American trade deficit, which became the source of aggregate demand for Japanese and Chinese capitalists, and these surplus values were being recycled through Wall Street.

15:17Who were the victims? The victims in the United States, of course, was the working class, the working class and the middle class, because increasingly, what is the point of aiming for profits if you can receive huge rents by shifting your production lines to Vietnam, to China, to India, even to Europe, much earlier in the 1970s and 80s, and then simply collect the tsunami of capital that flows back into Wall Street. In China, you had massive capital accumulation as a result of that. If you are an aluminum producer in Shanghai or Shenzhen and you're selling to California, you have experienced over the last 30 years remarkable rates of capital accumulation.

16:13The trade surplus of China goes hand in hand with a wage suppression in China and suppression of domestic aggregate demand. So you have a class war happening in China and a class war happening in the United States. In the United States, they're in tears that they are the only winners. In China, you have capital accumulation, you have a capitalists that are gaining, as well as segments of the working class that are becoming upwardly mobile. So tried was where always class was. The second point I wish to make, speeding up my presentation so as not to exceed my time limits and simply to offer a warm up for the discussion.

17:02since 2008, which is the time when this reverse recycling cycle, the reverse in the relation to the Bretton Woods system, created gigantic bubbles, which is natural, because when you have this capital flooding Wall Street and its franchises, places like the City of London, as well as the Frankfurt banks, you give financiers a wad of money to redistribute in a few hours. They will find ways of building financial derivatives on them. And in the end, this financialization drive, which needed an ideology, political philosophy, in order to justify the deregulations that the bank has needed in order to play this recycling or reverse recycling role.

17:54This ideology, of course, is neoliberalism, which is not interesting at all, either from an economic theory point of view or from a political philosophy point of view. But it was the ideology which was necessary for this reverse recycling of capital that was being produced on the back of the trade deficit of the United States. All this creates a gigantic bubble in socioeconomic theory, all the rubbish about neoclassical economics being, you know, a proper science underpinning the shenanigans of the finances, the bubbles, of course, in real estate, the bubbles in the derivatives market, all that comes crashing down in 2008.

18:35And then two things happen. Firstly, Wall Street, even though the trade deficit of the United States recovered within 18 months after 2008, Wall State no longer has the capacity to recycle the tsunami or reverse recycled capital in the form of productive investments in the North Atlantic, either in Europe or in the United States, except one sector where the quantitative easing, the massive money printing that was affected after especially April 2009, in the context of the coordinated capitalist central bankers' attempt to refloat the financial vessels that had sunk a few months earlier, the only sector that benefited in actual capital accumulation from the money that was printed around$35 trillion between 2009 and 2022 was the big tech sector in the United States, what I call cloud capital.

19:33and the fundamental difference between cloud capital and all sorts of capital preceding it is that cloud capital, whatever lives in your phone, is not a produced means of production, but it is a produced means of behavioral modification. And the owner of that cloud capital has a remarkable capacity of directly modifying people's behavior in order to create digital victims like in the United States, It's Amazon in China, Alibaba. These are not markets. They are trading platforms. They are algorithmically hierarchical. They are a form of economic planning. These algorithms are optimized in order to maximize the cloud rents that the owners of those companies receive.

20:21In China, people like Jack Ma were repressed, and it was a very good thing politically, as was their capacity to convert surplus value into cloud rent. In the United States, there was no such mechanism. And you can see that Elon Musk has now actually moved into the White House. You know, landing his machinery into the servers of the federal government in order to extract more data, to build up more cloud capital. And, you know, I take my hat off to him. The way that he's managed to do that without anyone even noticing that this is what he's doing. The point I want to make, the reason why I emphasize so much cloud capital is because this is the reason, this is a forum looking at the United States and China.

21:08Why is there a new Cold War between the United States and China? Taiwan is not a reason. The position of China and of the United States for that matter, one China policy has been the same now since the 70s, since Nixon went to Beijing. So this is a ridiculous explanation. The fact that China is developing and it's becoming technologically particularly adept, well, didn't Bill Clinton think of that when he was moving heaven and earth to inject China into the World Trade Organization? These people were not dumb thinking exactly what they were doing. So that's not an explanation. For me, the explanation is that the thing that nobody had predicted in Washington, D.C.

21:46around 2008, 9, 10, 11, was this mutation of capital into a new form of cloud capital, which gives people like Elon Musk on the one hand, not just, not primarily Elon Musk, for that matter, people like Bezos and Peter Thiel are far more dangerous and powerful than Musk. But that's another conversation. But also the owners of Baidu, of Alibaba, of Tencent and so on in China, enormous power to convert surplus value into cloud rent. And why is this important? Because if I'm right, that ownership of cloud capital is now the source of exorbitant power, power extracting power, power to extract surplus value, and also free labor from people who are uploading stuff and working for free.

22:34They're not even proletarians. If I'm right, ask yourself the question, where are the two loci, the two poles of concentration of cloud capital? It's Silicon Valley and it's China. This is why there is this crash. And in particular, because China has a major advantage over the United States in this technological realm, in the realm of cloud capital. And what is that? In the United States, there is a war happening, not just class war, but also a war, an intracapitalist war between the cloud capital owners of Silicon Valley and Wall Street. Wall Street is never going to allow, they will nuke them if they have, people like Zuckerberg, people like Musk, people like Apple to steal, to grab their financial rents.

23:25So that's why you don't have an app like WeChat in the West. not because the West cannot develop a payment system like WeChat that is free of charge, but because Wall Street would not allow it. And Wall Street controls the central bank. This is not the case in China. The smart money, the smart people in the Washington DC see this and they realize that China has a fantastic advantage over the United States because of this merger of cloud capital and finance. I call it cloud finance, which cannot happen in the United States because of this war between financial capital and cloud capital. And, you know, they see, they know that China has the technology and the political economy that would allow a seamless connection between trading and money transfers, free money transfers across the globe.

24:21It can already happen with WeChat and the digital currency of the Central Bank of China. Of course, yeah. Can the Fed, would the Fed ever have a digital currency? No, because Wall Street would never allow them to do it. They are in control of the Fed, not vice versa, unlike in China. But China is now facing a great dilemma. With between three and a half and four trillion dollars of savings, does China, does Beijing really want to undermine the exorbitant privilege of the dollar? Not yet. It's clear to me that the Chinese leadership has not decided to go all out. And what would going all out mean?

25:05It would mean turning the bricks into a new form, a tech-savvy form of Bretton Woods, with China playing the role of the surplus recycler in the same way that the United States was recycling its own surpluses across the Bretton Woods system. China can do this today, but China doesn't want to do this yet because of all the savings that they have in the US dollar. And also, it's clear to me that China is very moderate and particularly careful before challenging the exorbitant privilege of the United States dollar. They can, but they don't want to, at least not until they're terribly squeezed.

25:50one word, well, one paragraph on what I think the Trump administration's smarter folks are trying to do. It is clear to me and to many, this is not a monopoly that I have, that Trump wants, or his people, want to achieve simultaneously two aims, two tasks which seem contradictory, but they do not see them as contradictory. And I don't think they are contradictory. They want to devalue the dollar by around 30%, far more so than they want to, you know, tariffs are a means to convincing, to convincing, you know, to strong-arming their trading partners to revalue their currencies vis-a-vis the dollar by around 30 % or 25%, thereabouts, while at the same time maintaining the exorbitant privilege to reserve currency status of the dollar, which they do want to do this, also employing stablecoins, because if they convince, for instance, the Japanese to convert half a trillion or one trillion of their dollar savings into stablecoins, the stablecoin companies that belong to the mates of Donald Trump, companies like Tether, USD coin, and so on, they will buy American 30-year bonds.

27:09So you will have simultaneously the sell-off of U.S. dollars so the dollar will depreciate and lower yields and better access of the US government to the money markets. So they will retain the privilege of the dollar without doing away with the task with the aim of devaluing the dollar. That, I think, is what they want to do. Whether they will succeed in doing it is neither here nor there. But for the Europeans in particular, to think that Trump and the Democrats in the United States are a bunch of idiots who don't know what they're doing. That is a major error. Trump is going to meet his comeuppance if this plan works, because if this plan works and the U.S.

27:55trade deficit shrinks, then his realtor mates and the financiers are going to be in deep trouble because their rents rely, as I said at the beginning, indirectly on the very large trade surplus. For me to conclude, at the level of ideology, is this a clash in the end? Is this something beyond just class wars? Yes, it is something beyond class wars, and I hope it is something beyond class wars. The United States is moving clearly in the direction of the philosophy, the political philosophy that we've seen being advocated by Peter Thiel, who is very clear and actually I appreciate what he said. He said that capitalism and democracy are not compatible.

28:41We know that. I and all of you know that. We know this for all our lives. But it's nice to hear it from Peter Thiel, except of course, Peter Thiel immediately goes to the next step, which is he espaces fascism and the kind of techno-fascism that goes along with his techno-fidalism. China is the only source of hope, at least in my heart and my mind. There is no guarantee of this, but it's a source of hope that a new kind of cooperative-based AI-assisted enterprise can rise in China, that the digital currency of the central bank can become a trust fund for every Chinese resident. that China, in other words, can show the way that cloud capital can be socialized and can become a source of progress, not a source of techno-fidelism that has its own ideology in the techno-fascism of people like Peter Thiel.

29:45Thank you. Giannis, thank you so much for opening up the panel for us. I see in the corner a pair of zeros, which indicates to me that it is past midnight where you are in Europe. And given that we're dealing with people here who are various levels of virtuality, different time zones, I know Rick has some work he has to get to. So I wanted to give Rick the opportunity now to ask one question, if he has one to you, Giannis, before you end up having to go to bed. I don't want to keep Janus from his sleep. I'm going to listen to your dog as well. All right. Yeah, I have a question. What in your mind, given all that you have written now and spoken and the many forums where you've addressed aspects of this, What do you think is the process of confrontation that the United States clearly has undertaken to either overthrow the Chinese government or slow its economic development or shape the next stage of its development?

31:09What is exactly happening in terms that I know large portions of the world fear as a step-by-step approach to nuclear war?

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32:22Well, there is a bipartisan agreement in the United States that China needs to be challenged, both in terms of technological sanctions and in terms of a military encirclement. Both the Trump administration and the Biden administration have demonstrated that. Trump 1.0, the first Trump administration, was quite mild. They imposed some sanctions on aluminum, on various commodities, and that was more or less it. And tried to find a way of dealing with Beijing. It was Biden that turbocharged the new Cold War. He was elected as the anti-Trump, and yet he was the one that, with the CHIPS Act, effectively he declared, he told Beijing, you are not going to be allowed to become a technologically advanced country.

33:19Now, that didn't work. You can see already, you know, take the last Huawei phone. It really didn't suffer. I mean, there was a period of one and a half years, which is nothing, of a contraction in technological development in that part. But look at DeepSeek, look at AI now. Chinese AI is going in leaps and bounds. So look, Trump is far less belligerent than the Democrats. And the way he conceptualizes this, having spoken to some of the people in his administration, which, you know, just stating that, I hope you understand the pain it causes me to have these discussions. But they were very interesting conversation.

34:06It seems to me they're fairly relaxed about China compared to the Democrats, you know, which might surprise the vast majority of people out there. The way that, you know, the Americans, the Democrats conceptualized the geopolitical chess game as NATO versus particular enemies of the United States. China, Russia, and all of them at once. So it was a multilateral thing. The idea was to coordinate constantly with Europe and with Australia and with Japan and with India to encircle China militarily and also in terms of sanctions trying to bring down Chinese big tech, what I call Chinese cloud capital.

34:58Now Trump understands that that doesn't work. He doesn't want, it's in his character, he doesn't want to have to talk to Keir Starmer and to Mertz in Germany and to anyone. He wants to do it himself. He wants to conceptualize the world as a bicycle wheel. So there's a hub in the middle and that's Trump. And then there are the spokes. The spokes can be China, Germany, India, you know, Russia and so on. and you want to deal with each one of them separately. So he slaps 25, 30, 40%, 50 % tariffs on everyone. He doesn't believe the tariffs will do the trick, but the tariffs are there in order to signal to every spoke, you have to come to me and you have to deal.

35:40And he will demand, he's already demanding different things from different spokes. So from the Japanese, he demands that they convert their dollars into whatever. from the Germans. He demands that Basf and Volkswagen shift their capital to the United States. For the Chinese, he doesn't have that many expectations. If he can come to a deal, he will. If he doesn't, he will have high tariffs. He knows that the Chinese economy, because it is so dynamic, it can sustain quite high tariffs. And that simply becomes a revenue for his federal government. And if he manages to find some kind of accommodation with a China-centric world, which doesn't challenge the hegemony of the dollar, I think that he would do it.

36:32Now, of course, as we know, inside every administration, that's not different to the Trump administration, there is a conflict. There are still the military industrial complex folks who are pushing him to strike at Iran, to maybe cause a conflagration over Taiwan by shifting nuclear missiles there, supposedly to protect Taiwan. But then there are the doves within his own administration that want none of that, that just want to cut a deal with Beijing. We don't know who is going to prevail on this. What we do know is that, since I'm speaking from Europe that the one continent which is so, so screwed is Europe.

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37:25I don't need to explain this. Thank you, Yanis. I really appreciate you virtually chatting for a long distance and sacrificing your bedtime for us. I didn't sacrifice anything. It's fun being with you. Thank you. Yeah. Thank you, Yanis. I think you can go to bed. No, I'm going to listen to Rick. and to the rest. Sure. And be like for a seat. If you see me nodding off, just excuse me. Yeah. So I think Yanis raised a very, very interesting and pivotal question about socializing cloud capital and socializing the technological innovations we have there. And Wolf, you are very prominent Marxist and also a Marxist economist.

38:12So that is what I call a very rare thing because we haven't seen many Marxian economics breakthroughs. We have a lot of Marxism philosophical breakthroughs. We have people like Stavros Zizek. We have people like Badio who make breakthroughs in philosophical theories, but not so much in economic theory. And I think we can borrow your dance in how you're inheriting the Marxian, especially American Marxian economics legacy to expand what is happening today in China and America. And I'm particularly interested how you and your theory may help us understand what Yanis is saying, how to socializing the capital without, I would say, going too fast into central planning economy.

39:10OK, well, let me begin a couple of introductory remarks. Thank you very much for inviting me. um i am familiar with the building in which you are holding this since i was both a graduate teacher a student and a professor at yale for a while earlier in my life um i understand your comments but let me be a little bit mysterious and tell you that marxian economists are a lot more numerous in the United States than you might imagine. And there's no difficulty in explaining why. It's dangerous. And so it's important not to be very open about that. I am in a special position, which is why you know me.

40:04And that's because I'm a graduate of the elite schools of the United States. And when confronted about my Marxism, I simply waive my pedigree. And in the United States, that works. And that's why you know of me and not of the many others that are there. I am going to approach this a little differently. I'm going to begin by reminding us all of the decades leading up to World War I. That was a period of time when there was tremendous tension among the great powers of that time. The European countries, especially Germany versus Britain, with the United States playing a growing role, and tremendous tension, conflict, and eventually a terrible, perhaps the most terrible, world war.

41:05Throughout that time, there were intense class struggles in every one of the contending superpowers. They were obvious. They were clear. It was capitalists versus socialists of one kind or another. And the lesson of that time was that the class struggles had their own dynamic, but they certainly helped shape the great power struggles and vice versa. It was a complex interplay that produced what? A dramatic change in the whole class configurations in every one of the contesting countries. Russia went off in a new direction with the Soviet Revolution. There were similar efforts, as I'm sure many of you know, in many other parts of Europe around that time.

42:10That was where Georg Lukács comes from. That's where Antonio Gramsci comes from. Lenin, I mean, all of them. The whole Marxist canon was shaken to the core. Why am I telling you this story, which you know? Because I think something similar is going on now. And here the two key stories are the United States and China with a secondary role played by Europe, as Giannis has taught us over the years, both by the roles he played and by the comments that he made. Here is what I think is going on. The United—let me preface it one more. Marx has a wonderful remark somewhere about no system disappears until it has exhausted all the forms in which it can function.

43:16That's a remarkable insight and lends itself nicely to what I want to say. Western capitalism, from its inception in England in the 17th century, or whenever you want to make the break, has gone through an immense array of forms. One of the most important, of course, the colonial form, when it was able and took this step to carve up the rest of the world, to feed it the raw materials, the food, and all the labor that it needed, the markets that it needed to expand beyond what it could, and that could at least postpone for a while the clash that it eventually worsened by virtue of that postponement.

44:15But there was a very powerful sequence of forms that it took. I think the United States and Europe are now at a point where they can't see and cannot envision the next form, which is becoming urgent because the form they're in looks like it's heading into the toilet. I think it is important to understand that they don't know where to go next or how to go. Yes, cloud computing, of course. The high tech, one of the only sectors, certainly here in the United States, that looks anything other than dead or dying. And the terrible fear here is that the Chinese have caught up and are in the process of surpassing the U.S.

45:16in just those areas. And that produces a very strange behavior. They can't provide work at a decent wage. Otherwise, they wouldn't be Donald Trump. He is the product of the failure to handle the last phase of the old system. when the U.S. Capitol left the United States, went to China, India, Brazil, all over, Vietnam, all over the place, and produced such a level of disorder in the United States that the conventional, comfortable politics of the Democratic and Republican Party collapsed. The middle dissolved. Meanwhile, something very similar was hollowing out capitalism in Europe. And here is then my notion.

46:20What you are seeing in the effort of the United States is a desperate, and I use that word intentionally, and if it frightens you when I use it, that's partly why I'm using it. I can assure you that the American people feel now a sense of desperation about their situation and a sense of desperation about the Trump government a mere two and a half months after it took over. It is a sense of a vortex, of a spinning out of control. Now, let me put that to the side. And my focus now is on China. China has outdeveloped the United States in the last 30 years. We all know that. The GDP growth that the IMF predicts for the United States this year is 2.5%.

47:27And most people don't think it'll make that. The Chinese predict 5%. And that 2 to 1 to 3 to 1 ratio has been the norm for decades now, and there is no suggestion that it will stop. This is a terrible problem, number one. Number two, China has figured out how to make a socialism unlike the other socialisms that have so far been tried. For simplicity, let me distinguish very quickly European socialism, or what is sometimes called Scandinavian socialism, although obviously it doesn't apply very well to Scandinavia these days. And it was what? It was an economy that was basically privately capitalist, but with a fairly strong dose of government regulation, high levels of taxation, and the provision of a social welfare state, more or less adopted in Germany or France or Italy and so on.

48:46That was the first model. Second model, the Soviet Union. There the government takes over everything in industry and a good chunk of agriculture and runs it like a state enterprise. China is neither of these. China decided to try something else, a hybrid. 50 % one, 50 % the other. with a strong government run by a strong communist party in order to control and shape and limit what this odd hybrid would do and how it would develop. Leaning on Confucian ideas from the past and leaning on a pretty good critique of both the Scandinavian and the Soviet systems. So China was able to do what no other socialism was able to do.

49:57And its hybrid model outperformed every person's expectation. I wrote my master's thesis at Stanford University on the Chinese economy many years ago. And the distance China has come, which I have followed ever since, is nothing short of spectacular. If you want to be a poor country that stops being poor, then China is the obvious model to use. and has been for years and will continue to be. And that's a very powerful social force to be able to say what I just said. But here comes the irony as I close. China, too, is at a point where, having gone through a variety of efforts, let me remind you, in the late 50s, the communes.

51:02That was my dissertation, was about communes in China in the early days of Mao. Then we have the Cultural Revolution, and we have all kinds of experiments. Then the reversion back to letting people become rich. Then the whole notion of a 50-50 private state. In a way, China finishes this, by now, stale debate of capitalism, the private versus the state. And it puts China at a point of questioning, I hope, its own class structure. And here, let me explain what I mean. I know that Marxism is interpreted in different ways. like all great orcs of great thinkers. There are lots of interpretations. But when I read Marxist Capital, which, by the way, I have taught in American universities every year since the 1970s, my classes are full and no one has ever interfered with me doing that.

52:16And I'm doing it now, this semester, as I talk to you. In my interpretation, the class structure Marx was interested in was the one that organizes the workplace between a tiny minority of people who are the capitalists, the employers, and all the others who aren't. The United States Census today says that the employers in this country represent 3 % of the people. The other 97 % are not. A revolution that Marx, therefore, foresees is an end to that way of organizing the workplace. So it isn't employers and employees. Why is this important? because this is an earth-shaking change that would implicate both the United States and Europe on the one hand and China on the other.

53:28It is something they have in common, that way of organizing their enterprises. And that's what's got to change in both of them. They come at it from a different history, in different ways, with different consciousness. But the problem is the one Marx set himself. Let me close with a quote, since I'm a Marxist, you will forgive me, from Lenin. After the revolution, in the short number of years he had before he died, He made the following comment. What we have achieved, he said, is state capitalism. His words, the working class seized the state and we now operate a capitalism. What we haven't done but is our next stage is to make use, and then he used this word, of worker cooperatives, which existed all over Russia at that time, as they existed elsewhere.

54:49That is the direction we have to go. Well, that's, of course, a recognition that the problem is the employer-employee relationship and the genuine democratization of the workplace is the agenda for revolutionaries. And when I ask myself, what alternative story could I tell rather than the one in which the United States keeps provoking the Chinese with one limit, with one exclusion, with one sanction after another. And I'm mindful today that Mr. Trump has discovered the concept of the secondary sanction. He used it at first for Venezuela. Here's what it means. Anybody who buys oil or gas from Venezuela will now be subject to a sanction.

55:56And he specifically threatened Russia and China. China gets a lot from Venezuela, if you're not familiar with that, that he would apply it. these are steps which to go back to my beginning in world war one led to one of the worst wars the human race has ever had i wish i were as sanguine as jan is about the prospects for that i'm real worried but then again i live here and as i watch the sinking of europe This episode is brought to you by Google Chrome. You think you know a browser, but Gemini and Chrome, that's new. It can help you with practically anything on the web, like restoring a vintage motorcycle from a 50-page restoration block, or finally break down that long article you've had open for weeks.

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57:33I get worried and as a Marxist I need to understand how and where I can think about a class change in both of the conflicting countries that I might be able to advance as a place for both of them to go other than the mutual slaughter that these people are capable of. And believe me when I tell you that the leadership in this country was under Biden and is under Trump capable. Do not forget we remain the only country that ever dropped a nuclear bomb on other people. It should not be forgotten. Last point. When Giannis tells us, as he does, and I couldn't agree more, about the sad, tragic, and I use tragedy in its Greek origins, of Europe.

58:45Let's remember how much of the world Europe dominated for so long. and look where it is now, desperately trying to hold on with its fingernails as it falls down the cliff. There is something unspeakably sad, and yet also there's an element of justice. That empire or those empires are over, unquestionably done. They passed the baton to the United States, which is now for the first time feeling itself in the last 15 years that its empire is also dissolving. That is what makes Trump Trump so crazy, so extreme in what he's doing. He's throwing around tariffs. It's a lifeline for him. It's a magic wand that will somehow make the disparate parts that Jan has sketched for us come together.

1:00:01Here in the United States, here's my last point. We have a metaphor we often use. It comes out of the American game of football. When you're losing and you're in the final seconds of a football game, the team that is about to lose often chooses to tell the quarterback, throw a Hail Mary pass. What that means is you throw the ball to a predetermined corner of the field. You tell all your players to run down there. You throw it down there, and you hope as it bounces around, it comes down in the hands of someone on your team rather than the other team. You know what it means? It means you've given up rational policy, rational strategy.

1:00:52It's all a matter of luck. Our government throws Hail Mary passes. people like Giannis and me try to make a rational strategy. It's right for us to try, but it misunderstands where we are if we don't realize that they've given that up. They are now in desperation mode. And the class struggle I think we need to wage is to tell them that the solutions to the problems on both sides might well be to question the organization of production in just the way Marx originally tried to get us to do. Thank you so much, Rick. And I apologize to everyone for the artificiality of this moderation. But given that we have all these different time zones going on, And before we open it up to those of us who don't have these time constraints, I'm just wondering if...

1:01:57Giannis, do you have a question for Rick before you turn in for the night? I just wanted to say goodbye. And I want to say that, you know, I agree with everything that Rick said. And since you asked me to ask a question, I'll ask him one more or less in jest. But isn't the Hail Mary strategy, at the moment when you feel you're losing the game anyway, the only rational strategy that is available? Yes. So it's so... And Hail Mary's, when you've reached a situation where China is more than twice as productive as you are, it has the manufacturing sector, and where it's all a matter of preserving your rents when you don't have...

1:02:37And they know that. You know, Trump is at least honest in that. The United States no longer has the productive capacity, not even to build nuclear submarines, let alone super fast trains. So their Hail Mary strategy of maintaining for another 10, 20, 30 years, if they can, the hegemony of the dollar while devaluing it and continuing to accumulate some rents. Well, you know, this is the best they can do. The question is, what will the American people do? Because they are going to be sold down the drain whether that Hail Mary works or not. If it works, they will still be thrown. Well, someone at the beginning, I believe, mentioned Hegel.

1:03:19And what Janis does as a good student of Hegel too, is remind us quite rightly that the irrational is the rational. It's not either or. It is that strange combination, which is the only way to understand all of these things. It reminds me of when people hear say about something that happened, it happened for no reason. The Russians invaded Ukraine for no reason, an unprovoked attack, as if that exists. Every attack is provoked. You either understand it and find the provocation, or you avoid it. But the notion that it isn't there, that says something about your reasoning if you understand what Hegel taught us.

1:04:13And I want to come back. Yes, the class struggle is getting very intense here in the United States. We have a revival of our labor movement, the likes of which we haven't seen for 75, 80 years. We have a revival of the left. Every Saturday now, there are mass demonstrations in front of Elon Musk's Tesla showrooms. You can't buy a Tesla here. You can't get through the demonstrators to get into the room to negotiate the purchase. The government has to promise severe penalties to people who deface the Tesla on the street, which they're, of course, doing anyway. They can't stop it. There are movements here.

1:05:06Again, you know, I don't know how long I will be able to speak freely anymore because things are really, I mean, Giannis knows he's had to live through these half a dozen times. But for Americans, this is very frightening. You hear the word fascism in this country more often now than I have for a long, long time. There is a question I want Daniel Matindi to address. It's like sometimes harmony can be in the form of oppression or in the form of controlling. And that is where your research is mainly about, about how Chinese Communist Party and the government interact with social forces and military.

1:05:55So what's your take on this statement, especially when it comes to how the sociological evolution and the social interaction between the government and the society in China, and how you are going to respond to the future of China and U.S.? Great. Well, thanks for this. And thanks for the invitation here to speak with this distinguished panel and participate in this conference. Well, I'll answer your first, the direct question, and then kind of pull back to think a little bit about U.S.-China relations. I'll try to be brief because I know people want to hear the Aosha speak. I think when it comes to thinking about what the Chinese system is, I think for a political scientist studying in the West, so I'll say, first of all, I'm not a philosopher myself.

1:06:47Now that Dr. Wolf is gone, I'll say I'm not a closet Marxist either, but I'm mostly an empirical social scientist, right? Studying China, China's relationship with the United States and the rest of the world. So I think for a political scientist like me, I would describe China's system as being authoritarian rather than democratic, right? There's a strong Leninist party state run by the Chinese Communist Party that governs most aspects of society, which isn't to say that everyday life in China is, particularly for people in the kind of heartland of China, is, you know, a repressive totalitarian state, but rather, you know, it's a country whose leadership is not democratically elected at the national level.

1:07:35And this does, I think, set up a potential contrast in systems around the world. So if you think about the United States and China and how the rest of the world sees China and the United States, the world does see China and the United States in different terms. I think, first of all, views around, some of my own research has been doing surveys of people around the world to try to understand how they perceive China, how they perceive the United States. I think people know a lot about the United States and what they know about the United States, of course, is not always favorable. When you think about the history of the United States in a lot of the rest of the world has included attempts to export democracy and liberal democracy around the world, but the United States has not always done so consistently or in a principled way.

1:08:24So views of the United States around the world are certainly varied. People around the world don't know as much about the PRC, about China. And so this provides a kind of interesting situation, I think, for U.S.-China global competition. First, if you ask people around the world, would you rather live under the American political system or the Chinese political system? The majority of people, I think 16%, say that they would prefer to live under the Chinese system and the rest of people say under the U.S. political system. More people would like to live in the Chinese economy. 30 % of people around the world in the 19 countries we surveyed would prefer to live in the Chinese economy versus about 70 % in the U.S., which does suggest that baseline, you know, people have a more positive perception of the American political system than of the Chinese political system.

1:09:18But what I will say is that people around the world don't know as much about China, about the Chinese Communist Party and the PRC compared to the U.S., which provides a kind of opportunity for China and for the U.S. to shape global perceptions about China. So in projects that I did with some grad students here, we also asked people to watch some clips from CGTN, China's kind of answer to CNN. And it really shifted people's attitudes. We were able to get people from about 16 percent of people preferring to live under China's political system to 54 percent after people had watched some of these CGTN clips.

1:09:53And what it did was it changed people's perceptions of what China's political system is. It changed people's perceptions of China's political system, not as being a kind of necessarily like a democracy in the same sense as the United States, but that China was a country where the government was responsive to people's needs and the economy was was dynamic compared to the United States. So I think if we pull back and think about what this competition is, there's a possibility that it could be this kind of competition between political models and and potentially between a kind of capitalist liberal democracy and a more socialist, but still with mixing elements of market economy and authoritarian political system.

1:10:37And I think if it's on these terms, it potentially works in the favor of the United States. But I think arguably what we've seen is potentially a move in the Trump administration to making this less about competition between political systems and more just kind of great power competition in which these distinctions between political systems are less important. And one view is this is potentially kind of less hypocritical. So but it certainly feeds into a different way of thinking about what U.S. Sino competition is. Yes. The second thing or the kind of second main thing that I'll say, and I'll be brief, is just to talk a little bit about how I see how China sees itself and particularly how General Secretary Xi Jinping, as the leader of the Chinese Communist Party, talks about the Chinese political system.

1:11:33So again, I'm not a philosopher. I'm an empirical social scientist. Some of the work that I've done is spending a lot of time reading some of these speeches, but also using speech, using the text of the speeches and Texas data methods to try to understand in a systematic way how Xi Jinping is talking and how the rest of the political system is talking. So I've also collected data on tens of thousands of speeches and reports by local officials. And I think here you do see a contrast between Xi Jinping and his predecessors, particularly in the degree to which he talks about the importance of socialism and socialism with Chinese characteristics in a way that I think is different than how Hu Jintao or Jiang Zemin talked.

1:12:15And so in the kind of reform era, maybe we're not in the reform era anymore. We're in the Xin Shida, we're in the new era under Xi Jinping. But it's clear that he started to talk less about market economy and more about socialism than his predecessors. And you've seen the system under General Secretary Xi Jinping kind of snap into line with his way of thinking and his way of talking about the Chinese political system. And you see this filter down even to policy at the local level. So I've collected data on thousands, tens of thousands of policies at the local level.

1:13:14Hey Chicago, class it up with Crocs. You know back to school is coming in fast. So why wait to find your new fave footwear? Step into a local Crocs store and step into your new look. Try it, style it, make it yours. Because the right pair doesn't just show up, it shows off. First day fits, handled. Walk out ready for whatever's next. Visit your nearest Crocs store today. And you see policies at the local level starting to follow the general secretary's line. And I think that the system, you know, kind of mixes really three elements. The first element is there is a kind of socialist element to it.

1:13:58But I think it's not it doesn't look like socialism under Mao, socialism under the Soviet Union. But there is a strong guiding hand of the state in the economy. You see this with industrial policy and a lot of other areas in life. It's mixed with a market economy. I think the second key area is nationalism, patriotism, and Chinese culture, right? People have talked about the importance of patriotism, of traditional Chinese culture, and a certain kind of Chinese traditionalism underlying, I think, the administration of General Secretary Xi Jinping. I think the third element is the leadership of the party, right?

1:14:37You go back to, of course, Mao, but also the four corner principles of Deng. It was all in the end about the leadership of the party. And of course, this is a key element of what Xi Jinping sees as a core to the party's political system. And so political scientists would call this authoritarian. And so I think the Chinese political system under Xi Jinping is authoritarian. But to pull back to this bigger question of, you know, what is the U.S.-China relationship now? Is it about a competition between political systems or is it a competition between great powers? My own personal view, kind of stepping outside of the own research that I've done, but I think some of my research kind of would back this up, is that the degree to which this is a competition of political systems, it potentially plays into some advantages of the United States.

1:15:27and, you know, for all its faults, the remaining popularity of liberal political systems around the world, especially liberal democracies. But as under the second Trump administration, arguably the world has moved more towards a paradigm of great power competition. And I do think that this is a context in which there are a lot of potential advantages for China as China remains, is popular in a lot of the world, particularly places like Sub-Saharan Africa, Latin America, where, you know, everything from Belt and Road to China's bilateral diplomatic relationships are positive in a way that might be hard to see from Washington, D.C.

1:16:07So I'll stop there. Thanks so much for the organizers. Thank you, Daniel. I think you raised a very, very interesting point about if the U.S.-China competition is about the competition between political system, U.S. will have the age. So I want to hand the mic, virtual mic, to Yasha to talk about this question. Because Yasha, you research a lot on the decline of the democracy or the decline of liberalism in the U.S. as well as in Europe. And you made a very famous statement about illiberal democracy and the undemocratic liberalism, which correspond to the decline of the Democratic Party and the rise of the MAGA.

1:16:55so how do you see like why the u.s channel competition has stopped to be a competition of a political system at least in some degree and what's the relationship between that to the political dynamics within the u.s yeah thank you so much for this question thank you so much for your generous invitation to to this fascinating conference and to this uh panel which i think is going to be one of the more memorable I've served on recently. To bring the question back to the fundamental kind of motivating one of this conversation, how should we think about the nature of a competition between the United States and China today?

1:17:36It is obvious that there is some form of competition between those countries, but it's very hard to think about the right frame within which to understand the nature of that competition that I think is what we're all trying to figure out at the moment. So, you know, what's obvious is that there are some relatively straightforward dimension to the competition between, you know, the United States as the reigning superpower and China as the challenger to that hegemony. There's a military dimension in which both countries are trying to out-compete each other. There's obviously a technological dimension that was discussed in part in the last panel on artificial intelligence, but also when it comes to electric cars and other kind of key technologies of the future.

1:18:21And there's obviously a geopolitical dimension in terms of competing for influence, whether it is in Latin America and sub-Saharan Africa or in other parts of East Asia. The question that this panel seems to ask goes a little bit deeper than that, right? It is whether those dimensions of competition also translate into a deeper form of ideological competition between the United States as the kind of avatar of liberal democracy and China as the avatar of some kind of alternative political system whose definition is perhaps a little bit complicated. And the obvious analogy, both in terms of how people have talked about this increasingly over the last years, but also in terms of the last time that the United States had its hegemony challenged by a country that called itself communist, is the Cold War.

1:19:14And there's a kind of obvious analogy here, but I think that the analogy actually turns out to be wrong for a number of very important reasons. When you go back to the Cold War, the economic systems of the United States and the Soviet Union were really mutually exclusive. And as a result, there was virtually no trade between the United States and the Soviet Union, and virtually no trade between the countries that were integrated into the Western economic system and the countries of the Warsaw Bloc, as well as other communist nations. The Soviet Union had an explicit ambition for world revolution, an ambition that went well beyond liberal universalism and explicitly had as the purpose of its state that each country should be ruled in a Marxist-Leninist way.

1:20:01And as a result, from early on, policymakers on both sides of the Iron Curtain understood themselves to be diametrically opposed to each other. I think for all of the ideological differences and, of course, for all of the rival material and military interests between China and the United States, it is far from clear that these two countries are similarly opposed. They can trade with each other and, of course, do trade with each other even today to a very, very considerable degree. China does not have a comparable ambition for world revolution. It doesn't seem to me that one of the key tasks or ambitions of a CCP is for Canada to be ruled in the same way that China is ruled today.

1:20:51and it may not even particularly care about what the political system of countries around the world is. Indeed, the CCP is perfectly happy to create alliances and forms of cooperation with democracies that are tempted for one reason or another to become more friendly to China in trade policy and other dimensions. And of course, the same is true for the United States, for all of the talk about liberal universalism or the claim that America wants to democratize the world, in practice, American foreign policymakers are very happy to have close cooperation with countries like Saudi Arabia, for example, that are very far from being democratic.

1:21:30So this raises the question of whether philosophical perspective actually matters. Perhaps we're all making a mistake and we should have just added ourselves to the panel on international relations and not thought about these vexing complicated philosophical questions. So to answer the question of whether that's the case, I think we need to analyze the governing philosophy in each country a little bit more deeply. And though I have a burgeoning interest in China and I'm trying in a very amateurish way to pick up some Chinese, I'm certainly much more expert on the culture and the philosophy of the West.

1:22:07So I'll start by talking about the United States. And I'll start by citing one of the most influential texts for understanding our political situation from a Western perspective. And that's Francis Fukuyama's The End of History, a text that has been much mocked, often misrepresented as claiming that there is no longer going to be any kind of historical events in the world. But his fundamental claim is a little bit more subtle and interesting than that. His fundamental claim it is that for much of the 20th century, there was a fundamental ideological competition between different kind of regime forms.

1:22:44The ideological competition between the United States and the Soviet Union that I talked about earlier, but also, for example, the ideological competition between Western liberal democracy and fascism as represented in Mussolini's Italy and the Third Reich. and his claim is that fascism and communism now no longer exist as viable alternatives to liberal democracy. He has the nice line that there may still be a few true believers in communism in Pyongyang and North Korea and in Cambridge, Massachusetts, but other than that, the ideology is dead. In light of today, I think he might want to amend that line and say that there may still be some true believers in communism in Pyongyang, North Korea, and New Haven, Connecticut.

1:23:29But we'll leave that for another day. I think that that effectively remains true today. Despite the presence of some charming Marxists among us today, I don't think that there is a realistic worldwide movement, whether in the West or elsewhere, for Marxist revolution. The same is true when you think of other kinds of potential challenges to liberal democracy, certainly outside of China, such as Islamic theocracy, which may have a certain amount of appeal in parts of the Middle East, but which is facing real internal challenges of its own and which doesn't have any real appeal beyond the Muslim world.

1:24:12However, even Foukiyama turned out to be right about the absence of true challenges to liberal democracy. I'll come back to why I think that China doesn't count as that in this context. he underestimated the extent to which Western liberal democracies themselves would face internal challenges to their legitimacy. So the problem for liberal democracy today is not the presence of a compelling ideological alternative. It's that Western liberal democracies have proven to have much more struggle, much more difficulty than Fukuyama anticipated in gaining legitimacy in a sustainable way within their own countries.

1:24:53Now, I want to suggest that that has two effective reasons. The first has to do with failures of what political scientists tend to call output legitimacy, which is to say with the ability to live up to the straightforward material and other expectations of their own citizens. We have seen in many countries in the developed West, a stagnation of living standards, such that during the time when they really could solve these internal contradictions, they had very, very rapid increases of the living standards, with a doubling of living standards in each generation for the last 30 or so years, that has been much more stagnant.

1:25:32We see that in the difficulty of having straightforward good governance. There's been a lot of debate in the last weeks, rightly so, about the difficulty of building fix in the United States. Why it is impossible, for example, to have high-speed rail between Los Angeles and San Francisco, or between Boston, New Haven, New York, and Washington, D.C. It should take about an hour to get from here to Washington, D.C. if we had real high-speed rail here. And all of that has contributed to deep political instability in the rise of populism, which we see in the form of a Trump administration in the United States, but in many other countries around the West as well.

1:26:12So there's a real problem of internal political legitimacy. I think that's also, just because we're on a philosophy panel, a kind of philosophical reason for why liberal democracy is being challenged internally. I'll keep it brief and happy to speak more to that in the question and answer session. But I think that for the last three or 400 years, a lot of what is structured political competition in the United States are debates over formal equality, debates and causes fights for the formal inclusion of people who are formally excluded from the political system. So you go back to the time of the French Revolution, and Emmanuel Sieres is arguing for the inclusion of a third estate of everybody who is not an aristocrat or a cleric, and that was 90 % of the population.

1:27:06In later political struggles, there are fights for the inclusion of women in the political system, who are about 50 % of the population. You have a very important set of fights in the United States for the inclusion of enslaved people, of African-Americans in the political system. That at the time was perhaps 10 or 15 % of the population. In our own century, you have fights, for example, for the inclusion of sexual minorities, of gays and lesbians in the political system. That's, let's say, about 5 % of the population. I think once you've managed to include all of those groups, that structuring device no longer works.

1:27:45And I think a lot of ideological confusion of our age has to do with the difficulty of recognizing that and of substituting for that. And so instead, you get these sort of strange phantom fights. Either phantom fights in which struggles for formal inclusion are artificially extended, either by making them about groups that are too small a part of the population to play the same functional role. You see that, for example, in the recent fight for trans equality or in fights for the inclusion of groups, but just cannot sensibly be included in a democratic polity, such as that of animal rights, understood not as fights to avoid the cruel treatment of animals, that of really having them be considered in some kind of formal way within the political system.

1:28:37Those are interesting ways of trying to extend that old set of fights about formal equality, but I think they're doomed to fail. And that's part of the ideological confusion that is, I think, happening in the background of Western societies today. So what I want to suggest is that West's problem is not ideological competition from China, and it's not even military and economic competition from China in the first place. It is an ideological crisis brought on both by its failures of output legitimacy and by the running out of steam of one of the structuring philosophical movements of the last 300 years.

1:29:14Okay, so that then brings us to the question of China. Is China any better able to manage its own internal contradictions? And does the rise of China contradict Fukuyama's thesis of the end of history? That seems to be the view of some of our distinguished panelists today, of Yanis Varoufakis and Rick Wolf. As Varoufakis said, China is the only source of hope that cloud capital can be socialized. Forgive me for being a little bit more skeptical about that question. I think there are four challenges to the view that Yanis formulated. four challenges to the idea that China will be better able to manage its own internal contradictions.

1:30:00The first is that China has its own serious problems with output legitimacy. China has, of course, undergone a very, very impressive economic trajectory in the last decades. I've visited China a number of times in the last years and have been very impressed with how well and functional things are, how affluent a society it is, how many, of course, cultural riches it has. I think we're all aware that this is a wonderful civilization, a civilization we should all hope will succeed. But that shouldn't make us overlook some of the problems that China also faces, whether that is the high rate of youth unemployment in China today, whether that is the fact that China's GDP per capita does remain about a fifth or a sixth of that of the United States, depending on how you correct for purchasing power parity.

1:30:55The rapidly falling and very, very low birth rates, which means that China's population is going to shrink even more quickly than that of Western and Southern European countries and much more quickly than that of the United States. Or something that has come up surprisingly rarely in a panel that has featured some prominent socialist voices, namely how radically incomplete the Chinese welfare state remains, to what extent Chinese citizens remain on their own when it comes to making sure that they're going to have a decent life and retirement, but they can access healthcare and so on. A problem that is, of course, all the bigger if you have a one-child policy or the legacy of a one-child policy where one person might have to look after four grandparents.

1:31:42the second problem has to do with the recent transformation of china's political system china for a number of decades between the reform era and perhaps what now is called the new era had what political scientists would refer to as a form of institutionalized autocracy which is to say that it was, as Dan was saying, not a democracy, but it was a political system that distributed political power in a real way and therefore limited the power of any one individual. And that was a good part of its success during those decades. Well, it now appears that China is in the middle of a transformation to, or has perhaps completed a transformation to, what political scientists would call a personalized autocracy.

1:32:35And we know from much research in political science, that doesn't mean it's going to happen in China, but it does mean that there's a real risk of that happening in China, that personalized autocracies tend to fare much worse than institutionalized autocracies. But they are much less likely to have good economic management, to solve their practical political problems, to avoid high rates of corruption, to avoid other kinds of pitfalls that come from too high a concentration of political power in the hands of one person. The third reason to doubt, the third and fourth reasons to doubt that China is a proof of Fukuyama being wrong are more philosophical.

1:33:22They are first that, to a remarkable degree, China doesn't claim to be an ideological alternative because it actually claims to be a democracy. Dan and I as political scientists have claimed that China is not a democracy. You might agree or disagree with that, but it is actually an interesting fact that China's political leadership... This episode is brought to you by Google Chrome. You think you know a browser, But Gemini and Chrome? That's new. It can help you with practically anything on the web. Like restoring a vintage motorcycle from a 50-page restoration block. Or finally break down that long article you've had open for weeks.

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1:34:53The fourth problem is, I think, the most important. And forgive me a little quip here, which is that China works reasonably well in practice, but it is a mess in theory. And what I mean by that is that China's development has clearly been incredibly impressive over the last decades, but it is wholly unclear what it would mean or what it would take to export that political system to anywhere else. If you asked people, and Dan has done very interesting research on this, in Zimbabwe or in Kenya, whether they would swap their lived reality today for the lived reality of a citizen in Beijing or Shanghai or even in a second or third or fourth tier city in China, they likely would say yes, because life is on the whole better for people in those places in China than it is in Zimbabwe or in Kenya.

1:35:45But if you ask those citizens whether they would trust their political leaders or even some upstart political party to implement the Chinese political system in Kenya or in Zimbabwe, they'd say, of course not. How on earth would you do that? We don't have a 2 ,000, 3 ,000-year history of bureaucratic meritocracy. We don't have a political party that claims to be socialist, but actually rules in some kind of complicated capitalist way. If we tried to implement the Chinese system here, we would get all the worst things of the Chinese systems and none of its good elements. So why on earth should we do that?

1:36:22And how would we even go about trying to do that? So all of that is to say that I have my doubts about whether the philosophical dimension actually helps us understand the nature of a competition between China and the United States today. It can sometimes take a long time to recognize the nature of a shape of ideological competition. By the time of Cannon's long telegram, the Soviet Union had been around for three decades, not much less long than China has been shaped by the policies of Thanks, Xiaoping. But what we may ultimately face is not a new form of that kind of competition. It is rather a world that is different from what Fukuyama envisaged.

1:37:10One in which no country can fully resolve its internal contradictions and serve as the world's ideological hegemon. So perhaps we should have gone to that IR panel after all. another major aspect of the u.s china competition is about ideology it's about philosophy it's about what people believe in and that is where i think uh robin vitter uh the china expert from unc trouble hill can weigh in because her studies on chinese literature chinese philosophy as well as modern philosophies and ideologies on america and europe can really help us understand and the nuances that lie underneath the grand political economy on the surface.

1:37:59So let's welcome, Visser, and hope we can learn. Well, thank you so much, Carl, for inviting me to speak with this panel of illustrious intellectuals. And I do appreciate Yanis's economic analysis about cloud capital, And I really appreciated Richard's concerns about nuclear weapons and the level of desperation felt in the U.S. right now. So the question you pose, what is really at stake in U.S.-China competition? I would say, yes, it's economic dominance, of course. there's also a civilizational clash around defining so-called use universal values and there is more that i'll elaborate on here now so first of all in a global system where hierarchies in a global system of hierarchies where status matters the u.s and china are obviously vying for the top spot economically and in turn the right to define values This goes beyond a struggle between capitalism and socialism, in my opinion, though the different perspectives are nicely captured.

1:39:21in this 1952, one of the first feature films from the People's Republic of China, called Window to America, Meiguo Zhutuong. And it's in the film with some leading Chinese film stars. The entire American cast is Chinese actors in white face. And here's a short pitch for the film. Are current conditions in the U.S. making you want to jump out the window? Not so fast. There's money to be made on your death. So in the film, the window washer, Charlie Kent, has just finished cleaning the last window of a Wall Street skyscraper, and now facing indefinite employment, he plans to jump to his death from that very window on the 42nd floor.

1:40:12Mr. Butler, the capitalist from whose office he plans to jump, persuades Kent to jump, to stop long enough to allow his, Butler's company to turn his suicide into a live radio spectacle and sell advertisements. Ostensibly so Kent can leave his family a legacy. So you can watch this film on YouTube. It has new English subtitles on it. And it's both hilarious and depressing, like the TikTok riffs about Elon Musk or Luigi Mandioni's trial. So it's a prescient perspective on American values rooted in a brute capitalist system that profits off from death. But predating Marxist thought, there's also evidence that all civilizations tend to quote-unquote universalize or naturalize their worldviews.

1:41:02My colleague, who's Danish at UNC, the linguist and early China cultural historian Ufa Bergeton, in his book Emergence of Civilizational Consciousness in Early China, uses big data analysis with English, French, and classical Chinese, and finds the same universalizing discourses regarding civilization, racialized others, or quote-unquote barbarians, policing, and laws that we see emerge in early modern Europe, those same terms occurred millennia earlier with the rise of civilizational consciousness in 4th century BCE, China, pre-teen China. So because still, even though there are these universalizing tendencies among both civilizations, a universal concept of human rights doesn't follow.

1:41:59So what we see today is a conflict between a civilization that prioritizes harmony and stability and one that prioritizes justice and freedom. um jemmei liu in her forthcoming book called chinese third space the paradox of moderate politics talks about chinese intellectuals that embrace long-standing intellectual frameworks where paradoxical elements are not seen as irreconcilable but as complementary and interdependent and that lack of a consistent principled stance such as the kind you see in Calvinist puritanical theology at the basis of U.S. thought has driven some to near death. There's a story, for example, about the Korean revolutionary and Chinese Communist Party member Kim San or Jin Shan in Chinese.

1:42:54He nearly took his own life in despair at what he called the ma ma hu hu or kum si kum sa approach to revolutionary doctrine adopted by most Chinese communists. He eventually concluded, however, this disinclination toward doctrinal purity was key to Chinese civilizational survival over so many millennia. Ultimately, though, because we live in an era of nuclear weapons and climate change, civilizational evolutionary paradigms are limited. For example, in the U.S., we now see three strains of thought coming together. Late-stage capitalist neoliberalism, Christian nationalism, as we see in Project 2025, and what's been alluded to already, but the tech bro accelerationism, where you have J.D.

1:43:47Vance invoking thinkers like Curtis Yarvin and Nick Land's views of anarcho-capitalism, rooted in libidinal, sadistic desires and inspired by science fiction and online gaming. So is this a global phenomenon that transcends civilizational worldviews and priorities? Will we see the demise of the nation-state altogether? In Crack-Up Capitalism, Market Radicals and the Dream of a World Without Democracy, intellectual historian Quince Labodian discusses how the zone, as a subnational legal category, ended up fertilizing far more far-reaching radical political imaginations. We're aware that there were the export processing zones in Ireland around Shannon Airport in the 1950s, and then in Puerto Rico and Taiwan in the 60s, and later you have the special economic zones in China.

1:44:47These zones were used quite candidly by political leaders to create areas of unaccountability and accelerate economic activity for their own interests. And what you see is the economic accelerationism and lack of accountability now widely extends to the political and legal arena. So though the Biden administration was seeking strategic competition against China for world dominance, according to former State Department official Jessica Weiss, the public in the U.S. and China don't want world leadership. We can see the fragility of the world dominance narrative now under Trump. Some other think tank thinkers like Ryan Haas think that Trump wants industrial dominance, sovereignty, hence his tariffs and border control, and to avoid war, especially with nuclear powers.

1:45:43But I, on the other hand, tend to agree more with Richard and also with Naomi Klein, who in a recent podcast said, Trump and Putin share a common theory of power. She said, if you have nukes and you're the dominant power in your neighborhood, you get to do what you want, right? You aren't governed by any international system, any rules-based system. So I'll return to that in a moment. But where's China in all of this? From China's perspective, as we've sort of heard already, it may be best to just wait and see. They're not bloating, nor are they cowed. Xi Jinping is likely using Trump's flexing to advance his own agenda, the slow, systematic advance of regional and global power.

1:46:33Whether he'll have the luxury of moving slowly is yet to be determined. So in his opening remarks, Curl made the important point that from its modern inception, China has been deeply connected to the U.S. This is essential to understand. The elites of both nations have always understood their mutual interdependence. But I found his statement about the ontologically self-contradictory nature of both countries to be particularly perceptive. And now most today understand clearly that the U.S. in particular is ontologically contradictory. We see this. Trump is fully revealing the hypocrisies of the U.S.

1:47:20as espousing liberal democratic values. There's no longer any pretense. But he also talks about fewer recognizing China's Hegelian tendencies towards self-negation, which I agree with. So while Jiemei Liu argues for a Chinese third space, those moderate politics haven't been the dominant forces in the modern era. Sociologist Khuf Hong Kong suggests the Doge hackers are the red guards of the great GitHub cultural revolution storming the headquarters and confronting the party in the name of a pure reading of the master's texts. But if we think back to the cultural revolution, just as wiping your ass with a newsprint that happened to have reciting Moe could get you killed, there's no real ideological purity at play anymore.

1:48:12The days of ostensible doctrinal purity are gone. So what I see today is the millenarian theology of Christian nationalists has dovetailed into the prevailing anarcho-accelerationist thought. This intersects the social Darwinist thought of Chinese nationalism and techno-capitalism. So we see at the prestigious Fudan University, historically a bastion of the humanities, AI is now mobilized, and we hear that half of its humanities enrollments are slashed. So Xi Jinping's mock title of accelerator-in-chief is typically used satirically. He referred to the concept, Xi is hastening the demise of the Chinese Communist Party by doubling down on his authoritarian rule.

1:49:04Yet in its original sense, Jia Su Zhu Yi holds that strengthening the growth of the techno-capitalist state, not resisting it, will bring sweeping social change. Here we think of Shanghai-based accelerationist philosopher Nick Land's espousal of ideas like human biodiversity, capitalist human sorting, this kind of popular far-right pseudoscientific idea that different races naturally fare differently in a modern world, and about the supposed inevitable disintegration of the human species when artificial intelligence improves sufficiently. Accelerationism informs many white supremacist groups which hold that violence and discourse will topple the current political order and pave the way for their vision of the future.

1:49:56So whether it's the social Darwinism at the—so this is my final point—whether it's the social Darwinism at the base of some Tianxia philosophies of Chinese ecological civilization, as I discuss in my recent book, Questioning Borders, or the white supremacy at the base of Christian nationalism, such worldviews are obviously anti-democratic and based on pseudoscientific race theory aimed at producing quality populations that, among other things, view women as breeders. You can look no farther than a conference at UT Austin that just is just finished up. It's the pro-natal conference attended by a lot of Doge supporters.

1:50:44So the U.S.-China competition not only transcends the ideological and geopolitical facets of the U.S.-Soviet conflict, as Carl put it, but in some senses works together hand in glove. The two regimes are deeply interconnected. The rhetoric of enmity is in part, is at times rhetorical. Not that they aren't both playing a game, not that they're both vested in winning that game, but in game theory, a player's actions depend on those of the other participants. And although Baudrillard said that accelerationism is a science fiction about the system returning to destroy itself, as Audre Lorde reminds us, the master's tools do not break the master's house.

1:51:33Thank you. Thank you, Professor Visser. You made so many of a very interesting and intellectually rigorous statement to us. and i just want to catch one point of your statement is about you say chinese philosophy and chinese leadership they value harmony in a sense so you made a really wonderful i would say intellectually engaging lively statement about that and i particularly like like your idea of like each country each nation each has many has its own problem within and our priority is to find way to solve that. And I also like your idea is like, no, China is not going to export its political model, not in like any way we can foresee in the near future.

1:52:32Neither Chinese government is saying that you will be doing that, nor will other countries expecting that. So that is a major difference compared to Soviet Union or other Marxist nations in the history or in the present. So that may lead us to more, I would say, like you said, because Kenya or other countries, they will say, I don't have 2 ,000 years of bureaucratic meritocracy. And that is shaped by China's very civilizational and inherent legacy, which no other country can really replicate. So that really leads us to Pei Wang's work in Chinese classics and Confucius philosophy and also her research and training.

1:53:20This episode is brought to you by Credit Karma. When it comes to your money, Credit Karma keeps you ahead of the game. You can count on Credit Karma to keep up with your financial needs as they evolve, helping you monitor your progress and giving you personalized recommendations so you can make strides towards your goals. Make sure you're on the right track, no matter where you are on your financial journey. Intuit Credit Karma. Karma you can count on. Download today. In European philosophy and feminism, and I believe Pei Wang will give us another wonderful statement about how she thinks the roots of the United States and also more broadly the whole Greek to Roman to European legacy comes into play with the civilizational roots of China.

1:54:09I already learned a lot from our distinguished panelists today. and I do like the question you and Robinson raised. It's a compelling one. What truly lies at the heart of US-China competition? So today I would offer a comparative perspective from the lens of Jungian psychology, suggesting that the competition between China and the US at the level of leadership is a clash of two distinct archetypes, the hero and the father. so the title of my statement would be Hero and the Father, Contrasting Leadership Styles in the U.S.-China Rivalry. I'll explore the archetypes of the hero and the father within the historical context of both the West and China, and then offer insights into their influence in the political sphere.

1:55:00In ancient Greek culture, the father and the hero were two distinct archetypes, each representing different values and principles. The distinction is vividly illustrated in Homer's Iliad, especially in the iconic duel between Hector and Achilles. Hector, the tragic hero of Troy, embodies the archetype of the father, symbolizing duty, family, and the protection of his city. In contrast, Achilles, the greatest warrior of the Greek army, represents pure strength and individual heroism. In their confrontation, Hector faces the overwhelming might of Achilles, ultimately scumbling to defeat and suffer the tragic fate of being slain and his body discarded.

1:55:51Hector's tragic demise further undercours the distress of the father archetype in the world dominated by heroism. In the Confucian tradition, the archetype of father far surpassed that of a hero, a reflection of Confucianism's deep earring of a virtuous father figure. Emperor Shun, one of the most reverent sage king in Confucian legends, was chosen by the Emperor Yao as his successor. precisely because of his filial piety. He loved his father deeply, even though his father did not love him in return. At least two other important figures in Confucianism, Confucius and Mancius, also shared a profound longing and silent sorrow for the father figure.

1:56:44According to Sima Qian's record of the grand historian Shi Ji, Confucius' father died shortly after his death, and his mother never even revealed where his father was buried. It was too cruel for a child. This absence of a father during his early years undoubtedly had a profound impact on Confucius. Similarly, Moses also lost his father during his early childhood, and his mother single-handedly raised him through immense hardship. So what did these fatherless children discover? They discovered the ritual and music, liyue, symbolizing their longing for their absent father. and devoting their lives to learning and practicing them.

1:57:35Shun served as a minister to Yao for decades, learning from Yao, the king's father, Jun Fu, how to become a sage king. In the Confucian classics, Confucius discovers Duke of Zhou, a Confucian saint who lived 500 years before him. According to Analects, Confucius dreamed of the Duke of Joel frequently, who clearly served as his spiritual father. And for Moses, in return, he discovered Confucius. So in Moses, we saw Moses repeatedly quoting Confucius during his debate with others. Early on this foundation, we can grasp three fundamental characteristics of Confucianism. First, why ritual and music, liyue, are paramount.

1:58:26They foster harmony and peace within family, clans, and society. And that's a symbol of their longing for their absent fathers. And second, why lifelong learning is central. In many cultures, for example, U.S. society, learning is seen as the dominant domain of childhood. doesn't lifelong learning imply a forever childlike mindset? Precisely so. It reflects the attitude of one who earnestly identifies with and aspers to the father archetype. And the third, filial piety is the most fundamental virtue for Confucianism. In the classic of filial piety Xiaojing, the filial piety towards one's parents, is extended and transformed into loyalty towards the ruler.

1:59:18This differs from the love and the respect for parents in their civilization. In other civilizations, as Confucian filial piety arises from a unique context, it is a way of life created by those who carry unspoken sorrow of fatherlessness. Okay, so in the field of politics, what are the unique features of the hero archetype and the father archetype? Hero-style leaders are often filled with determination, courage, fearlessly facing crisis and challenges, always ready to defeat their enemies. Father-type leaders, on the other hand, are usually the protector of the nation, upholders of order and rules, and process of wisdom and virtue.

2:00:11We can observe the aesthetic difference between the U.S. and China regarding these two distinct types of leadership. For the U.S., father-type leaders are often perceived as weak and conservative. For China, a hero-type leader would be labeled as a solitary man, du fu. For instance, Man Siu once criticized the last king of Shang Dynasty as a solitary man, who was solely concerned with his immediate desires and interests rather than the welfare for the people. However, in Jungian psychology, each archetype naturally contains a negative potentiality, referred to as its shadow. You call it a shadow of the archetype.

2:01:06When individuals refuse to acknowledge the shadow dimension of an archetype, they paradoxically become more possible to be dominated by its unconscious forces. Another critical concept would be archetypal inflation. Archetypal inflation, a state where excessive identification with a particular archetype, such as the hero and the father, causes the ego to be overwhelmed by archetypal energy. This will result in distorted sense of reality and psychological imbalance, manifesting delusions of grandeur, paranoia, and messianic fantasies. So in political sphere, what potential negative effects might the archetypes of the hero and the father engender?

2:02:03When an individual over-identifies with or incorrectly integrates the hero archetype, several issues may arise. First is achievement addiction, characterized by continuous risk-taking in pursuit of constant success, using external victories to mask inner emptiness. Second is attention craving. where the individual becomes excessively focused on whether they are receiving enough immediate attention to the point of being unable to consider long-term perspectives. The third issue is arrogant blindness, marked by delusions of omnipotence, leading to the denial of personal limits and rejection of rational and reasonable advice.

2:03:01The fourth issue is the justification of violence, where aggression is rationalized and glorified as a sacred mission, often under the guise of violence for justice. And the fifth issue is the creation of dragons, where the individual demonizes all opponents as dragons that must be slain, since without dragons there can be no hero. The sixth issue, though a bit more subtle but already extensively discussed in Jungian Psychology, Peter Pan Complex. While the hero's journey must eventually end, an individual who incorrectly integrates a hero archetype may refuse to complete this journey, hoping to forever prolong their glory because they cannot face the reality of being a limited mortal being who still needs to learn and grow.

2:03:58And there is also negative manifestations of the father archetype in political sphere. The first would be excessive control, characterized by the imposition for strict rules and order to enforce comprehensive social regulation, severely suppressing individual freedom and diverse development. Second, authoritarianism, whose core features include worship and absolute authority and the maintenance of unjust hierarchical systems. Third is dogmatism, where the traditional wisdom represented by the father archetype, if it refuses to evolve with the times, devolves into ideological rigidity. a knowledge monopolization and the systematic suppression of innovative ideas.

2:04:57And finally, isolationist protection, a form of protectionism justified in the name of security, often leads to the implement of exclusionary policies and obstruction of international exchange and cooperation. As for the competition between the leadership styles influenced by the hero and the father archetypes, it's difficult for me to draw a definitive conclusion. What is clear, however, is that both the hero archetype and the father archetype are rooted in patriarchal characteristics and carry the original scene of patriarchy, strengths and conquests, authority and order. Carl Jung once pointed out that the feminine principle has been systematically developed throughout history, a suppression that is not only evident in political system, but also deeply embedded in spiritual domains such as religion and philosophy.

2:06:06From the perspective of Jungian psychology, the leadership style that first integrates the feminine principle, emotion, intuition, care, corruption, and nurturing, will be the one to emerge victorious in this competition. And that's my statement. Thank you. Thank you, Wong Pei. I should really thank you for adding this forum into a different and more, I would say, civilizational level. And I think everyone here can see the comparison you make between the father and the hero. we can clearly see like Donald Trump is the hero archetype. He's and he's craving for attention and the Peter Pan syndrome.

2:06:58He always craves others to see him as a very useful and a very not powerful in the sense like maybe like Chinese perceived in our own tradition, like the father should be silent. Like many younger generation of Chinese like myself, Like when we talk about our family issues, we talk about like our fathers, they do things, but they don't speak with us. They don't hug with us. They don't say, I love you. But that is exactly how the fatherhood in Chinese civilization demands. And here it comes to, I'm really so sorry, Slovo, we cannot be here today because there will be another debate between Lacanian and Yongian psychoanalysis.

2:07:42psychoanalysis, but I think you are a better young man psychoanalysis than Jordan Peterson. So I would just say the father archetype is very much similar to the Lacanian concept of the big other. So the big other, it doesn't say anything. You are not trying to sing YMCA every time and trying to do the dance every time. It is silent, just like Lacan's famous saying before he's dying like therefore i die so i become the big other so that is that is pretty similar with the chinese leadership today like despite uh um maybe the professor mattingly will say the propaganda of the chinese leadership is ever so immersive you will see a lot of books in a lot of bookshops and a lot of different kinds of propaganda but i think uh just like wong just said, beneath all that currents of the bureaucratic propaganda, there is a very strong need for the current leader of China to be invisible, but to be so powerful by being invisible and by being in a way unspoken and therefore to be true big other of China.

2:08:56Well, since we received our five-minute warning sign probably about 10 minutes ago. I just want to thank our remaining panelists as well as those who were not able to remain with us and the audience for joining us here tonight at Yale for this forum.

From the publisher

In this special episode, Robinson and Karl Zheng Wang co-host at the Yale US-China Forum. Return guests from the show include Slavoj Žižek, Richard Wolff, and Yascha Mounk. Slavoj Žižek is international director of the Birkbeck Institute for the Humanities at the University of London, visiting professor at New York University, and a senior researcher at the University of Ljubljana’s Department of Philosophy. Richard Wolff is Professor Emeritus of Economics at the University of Massachusetts Amherst and a visiting professor at The New School, where he works on economics in the Marxist tradition. Yascha Mounk is a Professor of the Practice of International Affairs at Johns Hopkins University. He is also a Contributing Editor at the Atlantic, a Senior Fellow at the Council on Foreign Relations, and the host of The Good Fight podcast. Yannis Varoufakis is a Greek economist and politician, and current Secretary-General of the Democracy in Europe Movement 2025. Robin Visser is Professor in the Department of Asian and Middle Eastern Studies at the University of North Carolina at Chapel Hill, where she researches modern Chinese and Sinophone literatures, urban cultural studies, and environmental studies. Pei Wang is Professor in the Chinese History and Culture Program at the University of Hong Kong, where she specializes in comparative philosophy, psychoanalysis, and more. Daniel Mattingly is Professor in the Department of Political Science at Yale University, where he studies the domestic and international politics of authoritarian regimes, with a focus on China.  


OUTLINE

00:00:00 Introduction

00:01:46 The Future of Europe and China

00:10:40 There Is No Such Thing as Trade Wars, They Are All Class Wars

00:15:50 How Wall Street’s Failures Fueled the Rise of Tech

00:20:02 Why Is There a New Cold War Between the US and China?

00:27:18 Why the United States Is Abandoning Democracy and Why China is Yannis Varoufakis’s Only Hope

00:29:26 Richard Wolff to Yannis Varoufakis: Are We Heading Toward Nuclear War with China?

00:35:58 How Class WARFARE Shaped the World Superpowers CLIP

00:41:01 Is China Capitalism’s Final Form?

00:52:03 Is There Any Way that China and the United Stated Could Avert Conflict?

00:59:16 Varoufakis to Wolff: Is a Tariff Hail Mary Trump’s Only Remaining Option?

01:03:39 Daniel Mattingly on China’s Sociopolitical Organization

01:08:39 How Does Xi Jinping Talk About Socialism?

01:13:47 Yascha Mounk on US-China Competition

01:22:36 Philosophy, Socialism, and Capitalism

01:48:40 Pei Wang on the Hero and Father in US-China Competition

01:54:31 Hero and Father Archetypes in Politics


Robinson’s Website: http://robinsonerhardt.com


Robinson Erhardt researches symbolic logic and the foundations of mathematics at Stanford University.

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