There Need Be No Head-on Clash Between the China Dream and Trump Dream

  There Need Be No Head-on Clash Between the China Dream and Trump Dream

China Times Editorial (Taipei, Taiwan)

September 3, 2018

 Translation of an Excerpt

The situation of the US-China trade war has become more serious; viewed from the fact that the US, as it wished, amended the North American Free Trade Agreement (NAFTA) with Mexico, Trump’s ferocious tactics have indeed won more advantageous trade terms. Coupled with the bright prospects of the US economy, reaching a prosperity rarely seen in recent years, Trump has become fully self-confident, attempting to force China to make greater concessions; China will face even heavier pressures in negotiations.

The US has sounded the bugle of the trade war with China, with many layers of meaning. First, in the matter of trade, Trump wants to reduce what he considers unfair phenomena, including huge trade deficits, endlessly acquiring high-end technology from the US, and the gap in the openness of Chinese and US markets. Trump wields a huge sword, imposing tariffs on US$50 billion, and even planning an additional US$200 billion on China’s exports to the US, in order to coerce the China side to make concessions in trade. In addition, Trump hopes to compel China to make structural changes, for instance, extending better protection to the intellectual property rights and high-end technology of foreign corporations, reducing regulatory restrictions, and opening further Chinese markets to foreign corporations.

Taking a longer view, China’s forceful rise is pushing and shoving away US containment, and the US military is countering with all efforts. The future pictured by “One Belt, One Road” and “Made in China 2025” has caused worries and fears on the American right. At this moment, Trump launched a trade war with China, redefining China as a protagonist in strategic competition; besides bargaining in short-term trade interests, he intends to coalesce the American right to up the ante in negotiating with China.

As far as the development level, trade volume, and the degree of trade reliance are concerned, the US may indeed be hurt when a trade war breaks out between the two nations, but the harm and damage for the Mainland could, however, be even greater. But China has a vast market hinterland and strong capacity in governance; it need not be afraid of engaging in a trade war. Nevertheless, China has more macro and visionary goals to realize; from the viewpoint of long-term interests, it should smooth out the bilateral trade disputes, avoiding radicalizing conflicts, using concrete measures to convince Trump to return to the negotiating table in order to seek a peaceful and stable environment for China's long-term development.

Attachment : none