Who is to pay for Trump’s trade war against China?

President Donald J. Trump and Japan’s Prime Minister Shinzo Abe leave the Akasaka Palace Monday, May 27, 2019, following their afternoon meeting at this Tokyo palace. (Official White House Photo by Shealah Craighead)

The US President Donald Trump and the big American tech companies have raised the stakes this week in the ongoing Pacific war. Japanese and South Korean tech giants have also joined the Americans in black listing Huawei and other Chinese companies in an all out war against China. As expected, Japan supports the US policy in South East Asia.

As for Trump himself, he declared ready to increase tariffs on additional Chinese imports of a value of $300 billion this time. In this way, he practically punishes all Chinese deliveries to the US. The American President confirmed he will raise the tariffs in case his meeting with the Chinese leader, Xi Jinping, at the G20 Summit of 28-29 June in Osaka ends without a result.

Punishing all Chinese exports…

The problem is, though, that the Chinese Foreign Ministry didn’t confirm there will be a meeting. It’s not even confirmed if Xi is to attend the G20 Summit at all. To be reminded, on the 10th of May Trump increased the tariffs on Chinese imports of a value of $200 billion from 10% to 25%.  With the full value of Chinese exports to the US in 2018 around $540 billion, the Americans are then ready to punish all the Chinese sales to the US.

…and Huawei

On the other front of the US attack against Chinese targets, a number of US tech giants have told their employees not to talk to the Huawei people. The US have targeted the tech giant Huawei Technologies Co Ltd and other Chinese firms as an additional weapon in the escalating trade war. According to Reuters “Chipmakers Intel Corp and Qualcomm Inc, mobile research firm InterDigital Wireless Inc and South Korean carrier LG Uplus have restricted employees from informal conversations with Huawei”.

Alarmingly enough, in this dangerous confrontation, we find that at the heart of Washington’s ultimatum lies a demand which is quite impossible to be met by the other side. Apart from the usual requests, one finds that the Americans ask China to drastically change or practically destroy her extremely successful strategy for economic development.

What do the Americans want?

The rest of the US demands, about stopping technological transfer and better access for American companies in the Chinese markets, can be rather easily met. However, this is not the case for the destruction of the substructures of the entire Chinese economy, which are based on the government’s multi-annual development plans.

In reality, the Chinese economy is not much less private than the US. The government in Beijing, however, retains the right to direct the economy to the more promising paths, a tool that the administration in Washington D.C. also cherishes. So, at the heart of the US demands lies a hollow shell full of American aggressiveness.

Who is to pay?

Last but not least, the US-China escalating trade war has already had an adverse impact on the rest of the world. Europe is again heading to recession, having already marked last month some very low growth and inflation rates scores. Pressing interest rates further down in the negative part of the chart and spreading around more cash by the European Central Bank won’t remedy the euro area malaise.

What if a new accident happens and the world is hit by a new financial meltdown? Who is going to pay the cost this time? Can the usual suspects – which are the hard working billions of people – again save the global economy from collapsing? Looking at the latest developments in the US, Europe and China we can tell who is again going to pay the price and how.

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

the European Sting Milestones

Featured Stings

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

UN chief urges peaceful, free and fair elections in Cameroon

Libya: UN Mission condemns deadly attack against police in country’s south-east

Yemen blast kills 14 children, leaves others fighting for their lives in Sana’a

Parliament approves €34m in EU aid to Greece, Poland, Lithuania and Bulgaria

How can we measure real progress on the Sustainable Development Goals?

“Two Pack” approved: Is democracy chased away from Brussels?

Why flexible workspaces are the key to winning the talent war

EU and China seize momentum to enhance trade agreements in response to Trump’s administration

Safer products: stepping up checks and inspections to protect consumers

How cultural understanding can help in the cultural shock

Bureaucracy in the member states again the obstacle for long due strong European Hedge Funds

An economist explains what happens if there’s another financial crisis

‘Habitual residence’ rules deprive EU workers from social benefits

Brexit: Six more months of political paralysis or a May-Corbyn compromise?

How the diaspora is helping Venezuela’s migration crisis

The 5 things you need to make your teams more effective, according to Google

Commissioner sings “Volar-e” but the European driver no “Cantar-e”

UN Environment Assembly 2017: where the world convenes to #BeatPollution

“Beyond the beach: tackling plastic pollution upstream”, a Sting Exclusive by Erik Solheim, Head of UN Environment

Brexit: UK business fear of a no-deal scenario preparing for the worst

A Sting Exclusive: “Regulators and the shipping industry collaborating for a sustainable future”, written by the Secretary General of IMO

These countries have the highest minimum wages

Italy can stand the US rating agencies’ meaningless degrading

The Brussels bureaucracy blocks the Youth Guarantee scheme

Brain Drain remains a crucial and unresolved issue

‘Stealing’ food from hungry Yemenis ‘must stop immediately’, says UN agency

How the EU crisis hit countries saved the German and French mega-banks from bankruptcy and still pay the costs

Bring killers of journalists to justice: UN agency seeks media partners for new campaign

Security Council approves ‘historic’ political Haiti mission, ending UN peacekeeping role in the country

Yanukovych attempts a violent and deadly cleansing of Kiev’s center

‘Provocative actions and inflammatory rhetoric’ destabilizing Middle East, warns top UN official

Heat-resistant crops, ‘green’ infrastructure, can prepare Near East and North Africa to better tackle droughts – UN agency

Generalist practicing: is it worth it?

How distorted is the EU labour market by this crisis?

Robots will soon be a necessity but they won’t take all our jobs

A Sting Exclusive: “Seize the opportunity offered by Africa’s continental free trade area”, written by the Director General of UNIDO

Azeri natural gas will keep the EU warm soon

Stigmatized, shunned and shamed, International Widows’ Day draws attention to their unique needs

Human rights: breaches in Russia, the Rakhine State and Bahrain

Libya: Heavy shelling and civilian deaths ‘blatant violation’ of international law – UN envoy

Climate Change: A Healthcare Emergency

This forgotten element could be the key to our green energy future. Here’s why

We need to measure innovation better. Here’s how

‘Hateful attacks’ pushing Sri Lanka backwards, UN advisers warn, urging an end to ‘discriminatory practices’ that feed intolerance

Food safety: New rules to boost consumer trust approved by MEPs

Former Chilean President Bachelet put forward by UN chief as next High Commissioner for Human Rights

A multipolar world brings back the national champions

EU-US Trade: European Commission endorses rebalancing duties on US products

Countries must up their game to reduce low birth weights, warns UN-backed report

Is this a turning point in the fight against slavery?

Gender equality and medicine in the 21st century: an equity unachieved

Commission launches debate on a gradual transition to more efficient and democratic decision-making in EU tax policy

China revisited by the former Ambassador of Hungary to China

EU threatens Japan to suspend FTA negotiations if…

How technology is driving a fourth wave of environmentalism

Protests, violence in Haiti prompts international call for ‘realistic and lasting solutions’ to crisis

This AI-powered app aims to help people with autism improve their social skills

EU–US: What is the real exchange in a Free Trade Agreement?

Afghanistan can rely on international support along harrowing road to peace, and beyond

The EU launches € 1 billion plan on supercomputers and tries to catch-up with competitors

More Stings?

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s