Donald Trump hasn't learned from the past. It's working again according to the pattern China's gaining. ‘Learned’

news.5v.pl 3 months ago

Trump imposed additional duties on Chinese goods this week. “So far, relationships are inactive stable, but I think we are at the beginning of the escalation,” says Simona Grano, China expert at the University of Zurich. It assumes Trump will proceed to rise duties. On Tuesday, he announced that he would increase tariffs from 10 to 20 percent.

However, Beijing rapidly responded with fresh tariffs on American agricultural products. “ China has learned how to deal with American fares, ” explains Grano. This country wants to show that it cannot be intimidated. It is inactive unclear how much these measures will harm both parties economically. Trump's strategy can, however, be more problematic for the US economy than China.

American companies, which trust on Chinese supply chains, complain about rising costs. Farmers whose products are now subject to retaliatory tariffs are besides under pressure.

China besides has strict control over trade, extraction and refining of uncommon earth elements. Last year 70 percent of the global production of these metals came from Xi Jinping’s country — which is besides heavy dependent on large American corporations. At the same time, Beijing strengthens its economical relations with another trading partners — from Southeast Asia to Latin America.

International leader

While Trump weakens global organizations and suspends US aid for a wide scope of global projects, Beijing expands its influence. “ China position itself as a unchangeable and reliable global leader,” says Grano. In particular, developing countries benefit from their financial assistance.

“ China has become the preferred partner in Africa and Latin America,” says Grano. Beijing invests in infrastructure projects and thus acquires fresh allies. While the US is focusing on isolation, China is taking advantage of an chance to strengthen its global relationship.

China's trade relations with Africa and Latin America have increased considerably. While Washington imposes trade restrictions, China enters into long-term agreements with countries specified as Brazil, Argentina and Kenya. Latin America provides China with soya, copper and oil, and African countries benefit from Beijing's investment in roads, ports and digital infrastructure. While the United States withdraws from multilateral agreements, China's economical impact grows where Washington leaves gaps.

This is peculiarly evident in the Belt and way initiative. China finances large projects in emerging countries, making them even more economically dependent on Beijing. “Many developing countries see China as a credible alternate to the US,” explains Grano.

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Weak side of China and rerun of the scheme

Despite expanding global power, China faces interior economical problems. “The real property crisis, stagnation of home consumption and demographic crisis put force on economical growth,” says Grano. Experts uncertainty that the projected 5% growth is realistic.

While consumption accounts for around 70% of economical production in the US, in China it is only 38%. The government seeks to stabilise growth by expanding public spending, but investors stay skeptical. “China urgently needs to become little economically dependent on exports, but the current strategy is not yet delivering fast results,” explains Grano.

Trump wants to put economical force on China, but his policy is besides in the hands of Beijing. US policy leaves uncertainty behind and creates a space for China's economical expansion.

— If Trump continues to weaken multilateral partnerships, China will take over the role, Grano expects. Already during Trump's first term, China benefited from the withdrawal of the US from global bodies. Now the pattern repeats: while Washington is building protectionist walls, Beijing uses the chance to present itself as a unchangeable trading power.

Ironically, Trump's tough attitude can have precisely the other effect: it strengthens the geopolitical position of China.

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