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It's certainly an opportunity in global soft power for the CCP, but I think the headline here is better framed as a shift in global economic power, specifically in tech. The current American government is certainly fucking things up for American soft power globally, but the political capital built up over the decades just can't be ignored as that just doesn't disappear overnight. Not to mention the human rights violations in Xinjiang, government corruption problems, aggressive naval maneuvering, and recent isolationist past that the Chinese CCP needs to overcome to become a serious contender as the new number one. They're kinda making their way through it, but it's definitely not inevitable, and too many short-term and long-term metrics are working against them. This particular situation could certainly be a solid foundation to build on, but the CCP and many Chinese vulture capitalists have a history of shooting themselves in the foot for short-term gains.
I'm glad you have mentioned some of the biggest of my gripes, because I didn't get to it in my original comment to keep it succinct and cohesive. And we'll see what happens, I agree it's not inevitable but this is like China's best shot at world dominance through soft power that its had yet. I think certain members in the CCP have some awareness that invading Taiwan is going to, maybe counterintuitively, blow up the opportunity and the soft power credibility they built through Belt and Road.
Yeah, I think that really is the foundational tension in China; the internal power struggle of a deeply authoritarian CCP versus the cooperative stance needed to gain/build political capital worldwide. As it stands, their system will resist any legitimately populist movement and disincintivize honest efforts to dismantle harsh authoritarian policies and violent state oppression. You don't maintain power (or your life) in a quasi-dictatorial party without keeping those who benefit from the system happy.