“Attempts under any pretext to block economic cooperation and disrupt global interdependence will only lead to a setback.” declared Chinese President Xi Jinping attended the APEC summit that just concluded in Peru.
“[S]Let's stand up against protectionism and unilateralism. ” said Ren Hongbin, a former Ministry of Commerce official and current chairman of the China Council for the Promotion of International Trade, is also attending APEC. “There is a rhetoric of decoupling and risk aversion,” he warned. “Artificial disruption of global supply chains is harmful to everyone.”
The Chinese government's campaign for the next president of the United States has just begun. China is trying to position itself as a champion of free trade and condemn President-elect Donald Trump as a destroyer of the world.
However, the Chinese Communist Party's legend is far from the truth. China is a predatory trading nation, and has become even more so in recent months.
How do we know this? The regime has stepped up its attacks on foreign companies, among other things. AstraZeneca confirmed this month What Chinese investigators had Leon Wang arrestedpresident of the company China business.
Several factors are at play at this time. First, Xi Jinping is absolutely determined to secure the Chinese market for Chinese state-owned enterprises. He attacks foreign companies at every opportunity.
Second, foreign pharmaceutical companies are at special risk because they occupy a sector that Xi Jinping is determined to dominate. Infamously, he is the driving force behind the Made in China 2025a predatory 10-year plan to achieve dominance in 10 key technology areas. One of these 10 areas is pharmaceuticals and medical devices. Moreover, his “strategy brief” aims for self-sufficiency in high-end medical equipment and patented equipment, among other things. pharmaceuticals.
Mr. Xi's move on AstraZeneca's strong performance in China with its portfolio of innovative medicines is a warning to foreign drug companies.
Third, while promoting himself as the planet's leading champion of globalization, Xi Jinping is actually seeking to sever and reverse China's ties to the world. Gaige Kaifan — “Reform and opening up” — policy Deng Xiaopingthe “second generation” leaders of communist China Mao Zedong's successor.
Mr. Xi does not leave any aspect of society alone and is ruthlessly seeking to eliminate foreign influence. His continued attacks on foreign companies are just part of this administration's overall effort.
The paradox is that Xi Jinping needs the world now more than ever. He rejected common sense advice to make consumption the basis of China's economy, clearly for ideological reasons and because he did not want to challenge the Communist Party's core constituency. Instead, he is trying to export a way out of the crisis in the developing world, leaving China highly dependent on access to overseas markets.
In this situation, President Trump poses a direct threat to the Chinese regime. During the presidential election campaign, he said In an interview with Fox News' Maria Bartiromo, he said he would impose tariffs of at least 60% on Chinese products and cut off the U.S. market for many Chinese products.
To keep its market open, Beijing will need to shoulder much of the cost of new tariffs, as President Trump did in 2018 using Section 301 of the Trade Act of 1974. . customs duties imposed Up to 25% discount on Chinese products. After that, Beijing and Chinese manufacturers through various strategies, I picked it up It is between 75% and 81% of the 2018 tax amount.
History repeats itself. China started this month just before the US presidential election. value of Rising renminbi and lower prices of Chinese products. This is “currency manipulation” and is particularly predatory.
Now, Mr. Xi apparently hopes that his propaganda attacks will help persuade others to stand up for what he stands for.free trade” But he does not wholeheartedly believe in free trade and would sincerely like to deny other markets access to the Chinese market while allowing China free access to other markets.
Mr. Xi should know that mercantilist tactics are used to persuade other countries to protect their industries from China's onslaught. The United States is not the only country building high tariff walls. european union is also doing soAnd even countries in the “Global South,'' where China is trying to make itself the champion of the world's developing regions. be patient Tariff wall on Chinese products.
In other words, despite his tariff pledges, President Trump is not attacking the rules-based trade order.
The real culprit is Xi Jinping.
Gordon G. Chan is the author of Plan Red: China's Plan to Destroy America and China's Coming Collapse, and is a Distinguished Senior Fellow and Advisory Board Member of the Gatestone Institute. Follow Gordon G. Chan. X (old Twitter)
This work has been republished with permission from the Gatestone Institute.
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