Heavyweight bully America has met its match in trade fight
America’s trade war against China is like a heavyweight boxer forcing a martial arts fighter into the ring.
The US has leapt off its stool hoping for a quick knockout before its coming midterm elections this November. The tactic is to bring down the Chinese stock market. US media have dutifully disseminated news of how China’s economy will suffer after a 30-per-cent loss in stock market value since the beginning of the trade war. Since China is positioned heavily on the supply side of the trade equation, it is logical that overseas buyers will hesitate to place orders amid the uncertainties. In the short term, revenue and profits will fall, and that worry is being reflected in the stock market.
While President Trump and his economic team are boasting that a strong US economy with a buoyant stock market will win the trade war, China has been handling the crisis with surprising aplomb. Both Chinese leaders, Prime Minister Li and President Xi, embarked on overseas trips to Europe and the BRICS countries to secure more economic alliances and cooperation. After all, the affected Chinese companies will need to fill the holes of US orders with new sources.
Deep inside, the Trump camp’s anti-China hawks – like economist Peter Navarro and nationalist Steve Bannon – are seeking a total dismantling of China’s power, not only to stop Beijing’s ambitious “Made in China 2025” goal for high technology products, but also to block its Belt and Road infrastructure projects. The alleged huge trade surplus and infringement of intellectual property rights by China are just excuses to pick a fight. When China agreed that it was willing to buy more American goods and open more of its services market, the US demanded more concessions and threatened to impose up to US$500 billion worth of tariffs if Beijing retaliated.
So we now have the ugly scene of a heavyweight boxer not wanting just a submission, but to break his opponent’s limbs in order that he cannot challenge him again. The kung fu fighter, now a master of his own destiny, is refusing to budge. With his tai chi skills, he will likely be able to defend himself and wear down the aggressive boxer, perhaps just in time for November.
Yingwai Suchaovanich
