In the face of an expanding trade war between China and the United States, Beijing takes decisive steps to unite the Global South countries against US customs tariffs. During the 4th gathering of the China-CELAC ministerial forum (the Commonwealth of Latin American States and the Caribbean), the Chinese leader called for solidarity, condemning “hegemonism and force policy” – a clear mention to Donald Trump's administration.
U.S.-China trade war: Who loses?
In fresh weeks, the United States has imposed fresh duties on imports from China and has besides increased force on Latin American countries to limit cooperation with Beijing. In response, China presented concrete proposals for economical cooperation, offering, among others, 66 billion yuan ($9.14 billion) in the form of loans to the region, visa exemptions and infrastructure investments under the Belt and way initiative.
– "No winners in customs war" – stressed the Chinese leader, pointing out that uniteraryism and protectionism lead to destabilisation of global trade. – "Only solidarity can guarantee peace and development".
Latin America and the Caribbean: a fresh front in the global economical war
For many Latin American and Caribbean countries, cooperation with China has become crucial in the face of American restrictions. Colombia, traditionally an ally of the US in the region, has announced its accession to the Belt and way initiative, a clear signal of diversification of abroad policy.
– “We cannot destruct our trade or endanger ourselves with bombs” said the president of Colombia Gustavo Petro. – "We must advance multilateralism, not confrontation".
A akin position was taken by Chilean president Gabriel Boric, who stressed the importance of free and fair trade for the improvement of the region.
– "Soverness is not only respect for borders, but besides the right to decide on your own economical future" said Boric, criticising the effort to impose trade policy by "one or 2 countries".
China vs. USA: a fight for influence in the Global South
Washington has been treating Latin America as its "area of influence" for years, but in fresh years China has importantly increased its presence there. Over 200 infrastructure projects have already been implemented under the Belt and Trail, creating more than 1 million jobs. In 2022, trade between China and the region first exceeded $500 billion – this is simply a 40-fold increase since the beginning of the century.
Meanwhile, the US responded to increased tariffs on Latin American products, which faced fierce opposition from local governments.
– "Some powers bring only negative energy" said Chinese abroad Minister Wang Yi, clearly pointing to the US. – "China is simply a real partner who does not set political conditions".
Will there be an anti-American economical alliance?
Beijing consistently builds a coalition of states against protectionism. The China-CELAC Forum announced, among others:
Strengthen cooperation within BRICS and another Global South organisations.
Combating “economic intimidation” and trying to make economies dependent on the West.
Developing alternate supply chains to avoid US sanctions.
Will this strategy work? Experts indicate that many countries, especially the mediocre ones, are tired of the dominance of the dollar and of Washington's sanctions policy. If China is able to build a lasting alliance, it could importantly weaken the position of the US in global trade.
The trade war between China and the US is entering a decisive phase. Beijing, alternatively of confronting itself alone, is trying to mobilise the countries of the Global South to common resistance. Can we make an effective alternate to American hegemony? 1 thing is certain – The fight for the future of planet trade is just beginning.
Source: SCMP
Leszek B. Glass
Email: [email protected]
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