Counterproductive Trump Regime Trade War with China
by Stephen Lendman (stephenlendman.org - Home - Stephen Lendman)
China is a growing economic, industrial, technological, and military powerhouse.
Its ruling authorities seek cooperative relations with the US and other nations, wanting confrontation avoided.
Months of Trump regime initiated trade war is hurting US enterprises. According to survey data released by the US Chamber of Commerce in China, over half of US businesses operating in the country said higher tariffs cut demand for their products.
Over 40% said they incurred higher manufacturing costs. Around a third of US companies said they're delaying or cancelling investment decisions until the bilateral trade dispute is resolved.
Others said if it continues longer-term, they may relocate their operations to other countries in the region or elsewhere.
Most companies said they haven't experienced retaliatory measures by Beijing other than announced tariff increases, though around 20% of respondents indicated they're facing increased inspections and slower customs clearance of their products.
A joint AmCham China/AmCham Shanghai statement said "(t)he negative impact of tariffs is clear and hurting the competitiveness of American companies in China."
Investments by US enterprises in the country slowed since Trump initiated trade war. In Q I 2019, they grew by 24%, down from 71% last year, according to China's Commerce Ministry.
Following the breakdown of trade talks on May 10, a further round hasn't been scheduled. Chinese international relations expert Jia Qingguo expects the current impasse to last a while because the Trump regime "refused to make even the slightest compromise."
It's how Washington operates time and again, making unacceptable demands, offering nothing in return but empty promises — why US/North Korea talks broke down.
It's why Iran won't negotiate with Trump, knowing the futility of dealing with an untrustworthy regime.
Its unlawful sanctions war, false accusations, hostile rhetoric and saber-rattling, along with its JCPOA pullout speak for themselves.
China Center for International Economic Exchanges' chief economist Chen Wenling slammed the Trump regime, saying it's "disrupting the world order, weakening the global economy…destroying the trade rules, (and) will pay the price" for its protectionist policies.
Former Morgan Stanley Asia chairman Stephen Roach accused Washington of "blam(ing) others for economic problems that are very much of its own making."
On Friday, China's official state broadsheet, the People's Daily, accused the Trump regime of "bullying practices," adding:
"The US is not sincere in trade negotiations and playing fast and loose has become a regular practice of Washington. (It's) hypocritical…in its remarks (and) actions."
China "will resolutely safeguard its core interests and…principles…(I)t will only be wishful thinking for Washington to infringe" on them.
China's Global Times accused the Trump regime of "biting off more than it can chew," adding: "The trade war will only result in a lose-lose outcome" — warning of "a protracted war," stressing Beijing "will not yield" to unacceptable demands.
On Friday, China's Foreign Ministry spokesman Lu Kang accused Trump regime officials of lying about unresolved trade issues, saying they "fabricate(d) lies to try to mislead the American people, and now they are trying to incite ideological opposition."
His remark responded to Mike Pompeo's criticism of Chinese tech giant Huawei, falsely accusing the company of intending to its 5G technology to spy on the US and its allies, saying:
"The company is deeply tied not only to China but to the Chinese Communist Party (sic). And that connectivity, the existence of those connections puts American information that crosses those networks at risk (sic)."
Bilateral differences proving irreconcilable are all about Trump regime efforts to give corporate America a leg up on competition with foreign companies.
China is targeted most of all because of its growing economic, industrial, and technological strength.
In the case of Huawei, it's over its technological lead in the race to roll out and dominate 5G networks globally, trillions of dollars of economic value at stake in the years ahead.
In mid-May, Trump signed an executive order, declaring a national emergency over alleged threats to US technology.
He invoked the International Emergency Economic Powers Act, giving the president authority to regulate commerce in response to alleged threatening emergency conditions.
The action was all about countering China's increasing technological strength and sophistication.
The Trump regime has been pressuring, bullying, and threatening other countries not to adopt Huawei's 5G technology, an unfair trade practice doomed to fail longterm.
Hostile US actions make it harder to resolve major bilateral differences. The same goes for US relations with other sovereign nations it doesn't control — bullying tactics doomed to fail.
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