US at­tempt to bully China into sub­mis­sion risks hurt­ing global econ­omy

Global Times US Edition - - ASIANREVIE­W - Page Ed­i­tor: li­[email protected] glob­al­times.com.cn

Wash­ing­ton on Au­gust 1 an­nounced it will im­pose an ad­di­tional 10 per­cent tar­iff on $300 bil­lion worth of Chi­nese im­ports, start­ing in Septem­ber, and la­beled China a cur­rency ma­nip­u­la­tor on Au­gust 5.

These moves have breached the con­sen­sus reached be­tween Chi­nese and US heads of state on the side­lines of the G20 sum­mit in Ja­pan in June, and fur­ther es­ca­lated trade fric­tions be­tween the world’s top two economies.

Since July 2018, trade hawks in Wash­ing­ton have uni­lat­er­ally pro­voked trade fric­tions with China, seek­ing to force Bei­jing into giv­ing in to Wash­ing­ton’s un­rea­son­able de­mands. Their bul­ly­ing goes against the spirit of free trade and in­ter­na­tional norms and risks hurt­ing the global econ­omy and dam­ag­ing the in­ter­na­tional trade regime.

China never wants to fight a trade war with any­one, but will do so when­ever nec­es­sary. As China de­fends its de­vel­op­ment rights and core in­ter­ests, it is also fighting for trade mul­ti­lat­er­al­ism with the World Trade Or­ga­ni­za­tion at its core and a fair en­vi­ron­ment for global de­vel­op­ment, demon­strat­ing a strong abil­ity to con­trol risks and a sense of re­spon­si­bil­ity as a ma­jor coun­try.

In the post­war era, more and more de­vel­op­ing coun­tries have ac­tively par­tic­i­pated in eco­nomic glob­al­iza­tion, and they have achieved rapid de­vel­op­ment.

Such a sit­u­a­tion has helped cut costs, boost in­vest­ment world­wide and in­crease the pur­chas­ing power of the grow­ing mid­dle-class pop­u­la­tions, thus fur­ther tap­ping the po­ten­tial for global growth, and help­ing move glob­al­iza­tion for­ward.

The US has been the big­gest ben­e­fi­ciary of glob­al­iza­tion. It has been work­ing to re­in­force its eco­nomic supremacy through global re­source al­lo­ca­tion.

US in­dus­tries, mak­ing full use of their fi­nan­cial dom­i­nance and tech­no­log­i­cal edge, have stayed firmly at the up­per end of the value chains, and reaped huge prof­its. How­ever, with a col­lec­tive rise of de­vel­op­ing coun­tries and emerg­ing mar­kets, the in­ter­na­tional order and divi­sion of la­bor are be­com­ing more bal­anced. A hege­monic Wash­ing­ton is not will­ing to see this.

China, the world’s largest de­vel­op­ing coun­try, is shar­ing de­vel­op­ment op­por­tu­ni­ties with other coun­tries and re­gions by ex­pand­ing im­ports and for­eign in­vest­ment as well as the China-pro­posed Belt and Road Ini­tia­tive. The ini­tia­tive pro­vides a new model for co­op­er­a­tion that pro­motes a more bal­anced ben­e­fit dis­tri­bu­tion world­wide, and presents more op­tions as eco­nomic glob­al­iza­tion is fac­ing a head­wind.

How­ever, the Cold War men­tal­ity has led some in Wash­ing­ton to view China’s rise as a threat to its global dom­i­nance. Their real strate­gic mo­ti­va­tion in pres­sur­ing China on trade is­sues is to de­prive China of its own de­vel­op­ment rights and to make sure it stays at the lower end of the in­dus­try value chain.

There­fore, China is not just fighting for it­self. It is help­ing shape a fairer global eco­nomic order and safe­guard­ing the de­vel­op­ment rights of de­vel­op­ing coun­tries.

Eco­nomic glob­al­iza­tion has given rise to emerg­ing economies. It is im­pos­si­ble to re­verse the trend with pro­tec­tion­ist and uni­lat­er­al­ist prac­tices. It is a rea­son­able choice for the US to ac­knowl­edge the de­vel­op­ment rights of the de­vel­op­ing coun­tries, and join them in mak­ing a big­ger pie of global de­vel­op­ment. The ar­ti­cle is a com­men­tary from the Xin­hua News Agency. opin­[email protected] glob­al­times.com.cn

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