[This piece was initially published on global research.]
Trump started his trade war with China over a year ago. After a year of escalations, two high-profile G20 meetings and months of on-off-on again negotiations, the trade war has the world tittering on the edge of a global recession.
In the run-up to last month’s G20 meeting, Trump had boasted that “it’s me right now that’s holding up” a deal with China. Rejecting Beijing’s pleas for a “balanced” deal, Trump’s top trade advisor Lighthizer declared that any deal must involve China making up for its’ “past transgressions.”
The notion that the U.S. has long been the victim of unfair
trade practices, especially at the hand of China, thus is no longer just election rhetoric, but the raison d’être of America’s trade
Continue reading On Trump’s Misguided Trade War with China
The current world order is grossly unfair … historians of an enlightened future may come back to view our times as the dark ages … when humans remain bonded to and oppressed by the hegemony and ideology “markets,” “rule of law,” “freedom” and “democracy”.
The pure hypocrisy of the world is never ending. And here is just one other small case study…
China is often accused by U.S. and Europe and Japan of over-protecting its economy from foreigners. The foreigners want more access but Chinese are greedy; they disregard any concerns of China of over dependence on foreign nations for critical sectors of technology. Continue reading U.S. Complains of Current Account Deficit and China Appetite for Western Technologies – A Self Inflicted Wound?
[An edited copy of this article under the title “America should not blame trade – or its trading partners – for its ills ” is initially published at the South China Morning Post (pdf archive here)]
Bernie Sanders and Donald Trump are leading a new American awakening on global trade. According to the new emerging consensus, America has been the victim of bad trade deals – including the yet-to-be-ratified Trans-Pacific Partnership (TPP) – for decades. These deals have shipped millions of good-paying American jobs abroad and in the process hollowed out the American middle class.
When Sanders and Trump recently began questioning the merits of trade with allies such as Japan as well, however, many believed them to have crossed a line. It is one thing to attack China for “stealing” jobs but quite another to sell short a close and faithful ally.
Americans have long harbored schizophrenic attitudes on trade, however. Continue reading America at a Crossroad: Rethinking Trade, Geopolitics, and Economic Well-Being
Last week, the U.S. Congress passed a bill that authorized the Obama administration to raise tariffs against Chinese goods in response to China’s alleged manipulation of its currency, purportedly to gain an unfair trade advantage. According to this article , while the Obama administration “has not taken a position on the bill … [t]he vote ‘shows lawmakers have serious concerns about this issue…’.” Leaders of the European Union appear also to join the chorus in bashing the Yuan, claiming that the Yuan may hurt prospects of overall European economic recovery. Continue reading Fighting for Jobs in a Globalized World
The U.S. Congress is running scared. With a mid-term election coming up and a populace that is unhappy about the economy, they have resorted to be mad about something, and that something appears to be China – specifically China’s valuation of the Yuan (RMB). The argument goes:
China is keeping the yuan artificially low. In keeping the Yuan low, China is stealing job from America, preventing America from undergoing a quick economic recovery. China is artificially manipulating its currency to gain an unfair trade advantage against America. America must wake up and do something. China doesn’t listen to reason. If the U.S. must go into a trade war with China, so be it.
Let’s take a look at the engine under the hood of such reasoning. Continue reading The Politicization of the Yuan