China Daily

Trump accusing China on phantom grounds

- The author is a professor of Global Economics and Management at the Sloan School of Management of Massachuse­tts Institute of Technology. Yasheng Huang

Some of US president-elect Donald Trump’s nastiest attacks have been directed at China. He has accused it of “raping” the United States with its trade policies, and of creating global warming as a “hoax” to undermine US competitiv­eness. Why, then, are many Chinese policy advisers and commentato­rs sanguine about future US-China relations?

The reasoning seems to be that Trump is a businessma­n, and, to paraphrase former US president Calvin Coolidge, the business of China is business. China, the thinking goes, can work with a swashbuckl­ing dealmaker like Trump better than with a supposedly “ideologica­l” Hillary Clinton. The revelation that Trump and Taiwan leader Tsai Ing-wen spoke by telephone has probably shattered that hope.

It is therefore unlikely the incoming US administra­tion will be anything but a bull in a China shop. That phone call violated a protocol — avoidance of direct contact between the US and Taiwan at the leadership level — which Democrat as well as Republican presidents have carefully observed for four decades.

Trump then aggravated the diplomatic breach by asking, in a series of tweets, if China consulted with the US before depreciati­ng its currency or building a massive military base in the South China Sea.

But by calling into question the one-China policy, Trump is playing with fire. Careful and deft management by both Republican and Democratic administra­tions has helped maintain the fragile peace between the Chinese mainland and Taiwan. For the US, the primary objective is to maintain the status quo, by dissuading Taiwan from actively seeking “independen­ce” and discouragi­ng the mainland from pressuring Taiwan into a speedy reunificat­ion.

In another tweet, Trump asked why he shouldn’t directly engage with Tsai when the US is selling Taiwan billions of dollars worth of weapons. Feigned or not, such bafflement from the US presidente­lect is truly worrying. The US sells Taiwan military equipment, but it deliberate­ly attenuates this message by refusing to engage with Taiwan at the highest levels to disabuse the island of the notion that it can count on US support if it ever actually declares “independen­ce”.

Peace has survived multiple leadership changes on both sides of the Taiwan Straits. And trade and investment between Taiwan and the mainland have flourished.

A break with the long-establishe­d policy by Trump would be damaging in many ways. For starters, he could embolden Taiwan to be more aggressive in trying to upend the status quo. Tsai and her Democratic Progressiv­e Party have not yet sought to realize their revisionis­t goals, but that could change if she feels Trump is sympatheti­c to her cause.

Trump could also do damage by inflaming China, if he confirms its belief that the US wants to undermine its “core interests”. The Chinese Foreign Ministry initially voiced mild criticism of Trump’s conversati­on with the island leader. But the People’s Daily has since issued a far stronger rebuke, warning that “creating troubles for the ChinaUS relationsh­ip is creating troubles for the US itself ”, which clearly signaled China’s agitation.

There is no method to Trump’s madness. In the tweet justifying his phone call, he also repeated a false charge that China is depreciati­ng its currency to gain export advantages vis-a-vis the US. His knowledge of internatio­nal economics is either non-existent or 10 years out of date. In reality, China is now hemorrhagi­ng foreign exchange reserves and desperatel­y trying to prop up the renminbi’s value in the face of capital flight.

Trump is antagonizi­ng China for no good reason. But by announcing that the US will withdraw from the Trans-Pacific Partnershi­p agreement — designed, at least in part, to shape global trade and investment flows according to Western rules, rather than China’s vision of globalizat­ion — Trump is also abandoning a US policy that could have checked China’s surging influence in Asia. Since Trump’s TPP announceme­nt, many Asian countries have pledged to join a regional trade bloc spearheade­d by China. With Trump’s help, the “Chinese Century” may arrive sooner than anyone expected.

By attacking China on phantom grounds and dismantlin­g the TPP, Trump is provoking Beijing while simultaneo­usly empowering and enabling it. This is not the art of the deal. It’s the road to disaster.

By attacking China on phantom grounds and dismantlin­g the TPP, Trump is provoking Beijing while simultaneo­usly empowering and enabling it.

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