Hidden agenda behind the trade war
THE WHITE House has been involved in a dizzying game of gamesmanship with China over trade.
It has been characterised by varying announcements of breakthroughs and deadlocks as the negotiations between the two countries meander.
Last month, news outlets announced that the US and the People’s Republic of China had agreed to move towards ending what has become known as a trade war between the two countries. The trade war relates to tariffs imposed by the US on imports from China to the US and to goods going from the US to China.
There is also conflict about the perceived abuse of intellectual property where China is accused of breaching IP protocols. It is unlikely that a concrete agreement will be reached before the end of the year and bring a halt to a damaging dispute.
Both countries lost a lot of money during the period of antagonism and hostility. China’s leader Xi Jinping, is a champion of globalisation and his counterpart in the US, Donald Trump, continues to act on the world stage with alarming contradictory behaviour that affects every facet of the US’s global relationships.
Trump came into power by bedazzling the disaffected citizens of America, a large percentage of the population who have not voted for decades because they mistrust the Democrats and the Republicans. As he woke up the sleeping giant, he dragged the rump of the Republican Party with him as they seized the opportunity to ride his coattails into power.
Trump has led his country into embarrassing catastrophes. The trade war with China is just one of the monumental gaffes but it is one that affects millions of people in China and the US and elsewhere.
The US and China have, even as far back as the Clinton administration, been examining and perfecting the way they trade with each other. This has included the question of intellectual property.
It has also included talks about how companies in each country go about investing in businesses or opening branches in other countries. The discussions have included important considerations like trade deficits. The talks were conducted at the highest level and overseen by the leaders of the two countries.
Unfortunately, a populist snake oil salesman, who vacillates at every turn, is interfering in trade matters he doesn’t understand. His forte is creating or manufacturing crises that play to the gallery of his supporters.
He has the attention span of a flea and communicates through Twitter like some adolescent with an attention deficit disorder.
Hopefully, the negotiations to end the trade war will make progress soon and calm down the markets.
It will be a welcome shift from the US president’s grandstanding and a return to sound business principles.
People throughout the world must be able to look to the larger economies that dominate world trade to come up with answers to combat inequalities across the globe. Traditional models of capitalist exploitation, through colonialism and neo-colonialism, are being challenged by innovative initiatives like China’s Belt and Road programme. We need to support the process and encourage the US to come to the party.
Humphrey is a freelance journalist in Johannesburg