US fighting China: Emerging Economic Battle-space
US and China are at odds and in locked horn situation since President Trump took office but how US intends to tackle China is burning question in economic circles. According to international sanctions regime practices, US has left with two more tariff increase options against China. It is to be noted that after full rounds of partial tariffs hike, there comes up taxing all importing goods following end of imports, as per norms.
US may not intend to go that far as Secretary of State of US Mike Pompeo and Defence Secretary of US James Metis met Chinse counter parts to discuss current crisis in full spectrum and scope. At the same time, US will, for sure, continue its efforts to contain China’s rise. US has many options in hand include targeting Made in China industry, restricted market access to Chinese goods, intellectual property practices and revamping international trade structures to undermine China. Make America Great Again occupies significant position in this global derive to gather strength that will eventually make America strong. Trump’s quest to leave or restructure World Trade Organization is the manifestation of its urge to leave little room for China to operate in economic market even with the help of allies i.e. European Union and Japan. It is to be noted that US can dissuade Chinese trade partners, isolating China’s non market economic system.
Though China has been reactive against US tariffs and raised counter tariffs but it has opened negotiation channels open for talks and getting familiar with intentions of US. China is playing safe and reluctant in engaging the US at any level of confrontation. China, historically has been the torchbearer of win-win policies but on the contrary, the US had the history other way around, even absolute. China is evaluating all alternatives against the US market. Even if China explores market in third world, a general question arises that would China work to raise purchasing power in third world. China is offering loans to third world, often termed as debt trap, would not seem feasible strategy from economic point of view. It must be noted it will increase Chinse diplomatic potential around the globe and possible absorption of underdeveloped economies of Africa and Middle East Meanwhile, China plans to achieve self- reliance in economy removing all of its vulnerabilities and soft corners of economy which it deem attractive for attacks.
US policy makers are well aware of all the developments and responding in best possible way but China’s partnership with Russia is alarming. The US has to face multi-dimensional threats and full spectrum of challenges in every manner but it must has to be prepared. The commission on national strategy recently published a report on which it expressed concerns on security challenges and called upon to meet them in result oriented manner. At the same time China is building its military backed by advanced technologies and in direct competition with the US in South China Sea. The future will only determine the winner of absolute. It is said long that the strong do what he do and the weak suffer what he must.