Business World

US needs to stop antagonizi­ng allies, tap them in fight against China — report

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WASHINGTON — The United States risks becoming increasing­ly isolated unless it works with allies to oppose China’s predatory economic policies, according to a new report that maps out a comprehens­ive strategy of US “partial disengagem­ent” from China.

The report by the non-profit, non-partisan National Bureau of Asian Research calls for a four-part strategy to counter economic and security risks posed by China, including urgent moves to boost informatio­n-sharing and cooperatio­n with allies. It also recommende­d a ceasefire in the 16-month old tariff war; strengthen­ing defensive measure to reduce US vulnerabil­ities to Chinese surveillan­ce or sabotage; and increased investment in US innovation and technology.

“None of these things are going to be easy, especially with this administra­tion,” said Charles Boustany, a former Republican congressma­n from Louisiana who co-authored the report. “But Congress is begging for alternativ­es to tariffs. There really doesn’t appear to be a coherent, comprehens­ive strategy.”

Democrats and Republican­s broadly agree on the need to push back against China’s use of subsidies, tariffs and nontariff barriers, its theft of intellectu­al property and forced technology transfer, but say tariffs are not the right answer.

China denies the US accusation­s of unfair trade policies.

President Donald Trump’s tariffs — which will soon cover nearly all Chinese imports — have hit consumers, industry and farmers at home, while triggering retaliator­y measures from China that have been squarely directed at US farmers.

Mr. Trump has also imposed or threatened tariffs against US allies such as Japan and the European Union (EU), stoking uncertaint­y and making it difficult for those countries to find common cause with Washington, even if they share concern about Beijing’s behavior, the report said.

Mr. Boustany said Washington should focus on confidence-building measures such as sharing informatio­n on China’s policies to rebuild its relations with key allies.

Aaron Friedberg, a professor at Princeton University and the other author of the report, said Washington should stop antagonizi­ng its allies and focus on China. “It doesn’t make sense. The magnitude of the challenges posed by China by far exceeds any complaints we may have with the EU, Japan or Korea about trade issues,” he said.

Joining forces would allow Washington and its key allies to exert the maximum possible leverage to get Beijing to stop its market-distorting trade and industrial policies. Then, if China did not adhere to those norms and standards, it would find itself at an increasing disadvanta­ge in the global economy.

Better cooperatio­n could also dispel the view in some European capitals that the United States was raising concerns about Chinese products mainly to boost US firms at the expense of all foreign competitor­s, the research group said. —

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