CHINA-US: TRADE WAR
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In an article published in Bloomberg News on October 30, former Chinese Vice Minister of Foreign Economic Relations and Trade and presently Chief Expert of the National Institute of International Strategy of the Chinese Academy of Social Sciences, and adjunct professor of the Tsinghua University, Ms Fu Ying, acknowledged that "China-U.S. relations have deteriorated faster than almost anyone could have expected" and asserted that "the U.S. is driving this process and should reflect carefully whether it’s in Americans’ best interests to continue down this path". In the article, which is part of a series for the Bloomberg New Economy Forum, being held November 6-7 in Singapore, she said tensions caused by trade have started to spread to other areas. She added that "the international level, globalism and multilateralism are under attack, and the resurgence of geopolitical and power competition, mixed with populism and protectionism, are weakening the bonds built among countries in recent decades". Saying there are various causes for the tension, she said "it also seems that the U.S. and other Western countries, driven by their suspicion of different political systems, have become more wary or even fearful of China’s success under the leadership of the Communist Party." She charged that U.S. "complaints rest on shaky foundations" as evident from the increase in its GDP per capita from $5.98 trillion in 1990 to $19.39 trillion in 2017, an increase of $35,577 per capita. On the other hand, China’s GDP per capita over the same period grew only $8,509, or less than a quarter of the U.S. total. She added that "some in the U.S. seem to be hoping to “decouple” the world’s two biggest economies, to reduce their interdependence and hamper or at least delay China’s progress. The demands they’ve laid out are so extreme they seem designed to leave China no option but to choose confrontation and enter a high-cost power game". She cautioned that "If China and the U.S. work together, they can achieve major successes. Confrontation, by contrast, would be enormously harmful for both countries and the wider world. American and Chinese leaders cannot afford to make misjudgments on the fundamental issue of each other’s intentions, or we will all lose out in a fruitless downward spiral". Acknowledging that "For its part, the Chinese can do more to dispel such corrosive misconceptions", she emphasised that "Although China has a right to defend its sovereignty when its political system is under attack, it can also do a better job of responding to specific U.S. complaints" making a reference to fighting climate change. She concluded with the assurance "Although events of late have increased apprehensiveness, we have not given up the hope of returning to a place of progress and stability, and we are willing to work toward this goal. Just because the Thucydides Trap is set, doesn’t mean we have to walk into it".
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