China follows policy of authoritarian capitalism, says US Senators

Senator John Cornyn on Wednesday said that the United States and India relationship will grow as both countries, unlike China, are committed to the rule of law which gives confidence to business and investors.Speaking in a virtual interaction on the theme “U.S. and India: Post Election Perspectives”, US Senator Mark Warner said that China follows the policy of authoritarian capitalism as it allows “ferocious domestic competition until the national champion arises” and then the champion is backed by the government in the world market.

“I think what we have seen is that China has this model where they allow ferocious domestic competition until the national champion arises on Huawei. That national champion then gets 75 per cent of the Chinese domestic market, and that translates into 20 per cent of the global market. And then the Chinese government would back that national champion with, in the case of Huawei 100 billion dollars,” Warner said. He further said, “There is no American or Indian company, alone, that can compete with that and we both are nations that operate under the rule of law.” On the US-India defense relationship, Cornyn said amid China’s continuous threat in the international waters the countries (QUAD) need to support each other.

He further said that China does not have many friends. It’s obvious that China is not going to stop to threaten freedom of navigation and international sea lanes and jeopardise trade the economy of countries like India and the world.