Tag Archives: trade imbalance

On Trump’s Misguided Trade War with China

[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.” 1

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 war. 

Continue reading On Trump’s Misguided Trade War with China

Notes:

  1. https://www.cnbc.com/2019/06/27/china-wants-balanced-trade-deal-at-summit-but-us-isnt-interested.html

America at a Crossroad: Rethinking Trade, Geopolitics, and Economic Well-Being

China U.S. Free Trade[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

The Politicization of the Yuan

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

Opinion: the Foxconn Incident is a Reflection of the Growing Pains Associated with China’s Traditional Mode of Development

The following is a translation of an op-ed published published in China Review News.

May 27, 2010 – Opinion: the Foxconn Incident is a Reflection of the Growing Pains Associated with China’s Traditional Mode of Development

The recent spate of suicides at Foxconn in China has brought unprecedented attention to this major international manufacturing subcontractor of electronics equipments.  While the causes of these suicides are inevitably complex,  the incidents are a general reflection of the stress the traditional mode of development has wrought on China’s society and provide a warning that change must be brought about soon. Continue reading Opinion: the Foxconn Incident is a Reflection of the Growing Pains Associated with China’s Traditional Mode of Development