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Wed Jul 11, 2018, 10:05 AM

How China plans to push back against Donald Trump in economic cold war

As Washington escalates trade tensions with threats of tariffs on another US$200 billion worth of goods, China’s leadership is positioning itself as a defender of the world trade order and, in the words of a source close to decision makers in Beijing, bracing for an “economic cold war”.

The source, who requested anonymity as he is not authorised to speak publicly about Beijing’s strategy, told the South China Morning Post that China was trying to put the trade row into a global context – whether the world should uphold the multilateral system under the WTO, as it has suggested, or let US President Donald Trump’s unilateralism prevail.

While the former Soviet Union aimed to defeat capitalism during the cold war, Beijing is trying to convince governments, organisations and companies – including US firms – that it is a champion of free trade, and send a message that unlike Trump’s “America first” policy, China is “still open for business” and wants to keep globalisation on track.

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It also sees an opportunity to find common ground with others hit by Trump’s trade wrath – including the European Union, Canada and Russia – and to stand up to Washington. China has, for example, been lobbying the EU to present a united front against the United States trying to unmake the existing world order, and the two sides have agreed to set up a working group to revamp and resolve disputes through the World Trade Organisation.

“The US is sabotaging the global free-trade system which was initiated by Washington decades ago. This is a ‘new cold war’ which threatens world peace and global development,” the source said. “China is committed to further opening up … to bring opportunities to the world.”

He added that China would try to push back against Trump’s “trade bullying” to protect its own interests as well as the free-trade system that has helped it and many other countries.

https://www.scmp.com/news/china/economy/article/2154699/how-china-plans-push-back-against-donald-trump-economic-cold-war

This is a replay of the 19th Century.

At the end of the Napoleonic Wars in 1814, with France defeated and Europe disorganized, Great Britain became the great champion of free trade, since it had the dominant industrial and financial infrastructure in the world. As the 19th Century progressed, Great Britain lost its dominance as it failed to keep pace with the developing nations of the United States and Germany. This became more acute after the Civil War unified the United States and Germany became a unified state in 1870 after the Franco-Prussian War. This led to the Great Depression of 1873-1896 which hit Great Britain especially hard and resulted in Great Britain being competitive mainly within its British Empire system of managed trade.

Since WW II, the US has enjoyed the dominant position formerly held by Great Britain, and it has championed free trade for much the same economic reasons. However, China and other developing nations have eroded the US' dominant position and made it far less competitive than it was in the 1950s - 1970s.

Whether this will lead inevitably to another period of global total war comparable to 1789-1814 and 1914-1949 is not yet clear.

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Response to Troll2 (Original post)

Wed Jul 11, 2018, 10:12 AM

1. You're always against the US, are you a American just out of curiosity

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Response to Troll2 (Original post)

Wed Jul 11, 2018, 10:22 AM

2. Fuck China. Let them sell shit like this in Europe and other places. We don't need it.

And they need to get rid of it. Let them sell it to the rest of the world.


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Response to JaimeBondoJr (Reply #2)

Wed Jul 11, 2018, 10:51 AM

3. What do you have against Christmas?

Although I do think that Elf on the Shelf should be banned entirely from import.

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Response to Troll2 (Reply #3)

Wed Jul 11, 2018, 10:56 AM

4. I have nothing against Christmas other than it's been pushed so far away from its meaning...

But pound for pound, in the pictures I've posted, you're looking at the bulk of Chinese exports. So, trade war? Ban their trinkets from coming into the country and their house of cards collapses. They know that and for all their bluster; they'll come to the table and negotiate in order to keep those trinkets flowing.

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Response to Troll2 (Original post)

Wed Jul 11, 2018, 03:37 PM

5. Well - it ain't as if the US is in a trade dispute with just China,

the US is placing new tariffs/restrictions on almost ALL their trading partners, including Canada.

We're gonna start looking elsewhere methinks, and we will not be the only ones.

I learned sumthing when I was in business for myself (just running one man auto repair shops). If you are not available to service a present customer, or a walk-in and they are happy with wherever they went when you are not available, most don't comeback.

I had customers comment they thought I was crazy to have a cab bring my parts from the local store (4$ then , about $8 now) rather than pop out for 20 minutes to get them myself, and I explained to them - if I ain't here - they go to the next shop 1/4 mile down the road, and most of the time they never come back.

This is gonna blow up in the USA's face big time - maybe not right off the bat, but alliances are being made so that those hurt by this tariff/sanctions bullshit ain't gonna want to, or HAVE to depend on the USA for their marketing/supply needs.

BIG boo-boo imo . . .

CC

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Response to Troll2 (Original post)

Wed Jul 11, 2018, 03:48 PM

6. Thank goodness we finally have a president that is willing to stand up for

the American people.

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