America’s unilateral trade policies could slow global growth
How refreshing it is to listen to the voice of reason in these times made turbulent by the US’ unilateral and protectionist policies. Especially, when the voice affirms the international community remains seriously concerned about the trade policies of the world’s largest economy which could reverse the trend of healthy global economic growth.
That voice is Christine Lagarde, managing director and chair of the International Monetary Fund, and her remarks came at a meeting with Chinese Foreign Minister Wang Yi last Wednesday.
So serious are the international community’s concerns that consensus such as that reached by the United States, the European Union and Japan on trade issues of “third countries” last Tuesday cannot alleviate, let alone eliminate, them.
Moreover, despite the statement of the three countries’ trade representatives that the three sides will make efforts to address “unfair trade”, the EU and Japan remain deeply divided over trade issues with the US.
As the global economic and trading system has become increasingly sophisticated, frequent trade disputes among major economies have occurred. But they had been largely using rational means to try to resolve their disputes.
And then everything changed in US trade and geopolitical policies. The Donald Trump administration’s protectionist and anti-globalisation policies are aimed at “making America great again” at the cost of the multilateral trading system and the world economy.
Since becoming president, Trump has withdrawn the US from many multilateral pacts and global bodies, such as the Trans-Pacific Partnership agreement, the Iran nuclear deal, the Paris climate accord, and threatened to pull out of the World Trade Organisation.
As the most powerful economic power, the US has pressured other countries into accepting its terms for trade and cooperation, and forced its trade partners to rewrite previously inked trade deals, inviting fierce opposition from the EU, China and Japan.
China has made its economic stance clear: It is willing to resolve trade disputes with other economies, whether it is the US, the EU or Japan, through consultations based on equality and fairness, and find solutions that fulfil the interests of all parties.
But if the US makes unilateral and protectionist moves to realise its selfish goals, China will be the last country to accept them – it will always resist all types of bullying tactics.