Again, the USA is blaming China for its trade policy and overcapacity for its economic rise. Why is it wrong for China to tailor its policies to grow and improve the lives of its citizens? Is progress a prerogative for and just reserved for the Anglo-Saxon White countries like the USA. The USA and the West can no longer compete economically against China and is resorting to hogwash arguments like overcapacity to destroy China. Did China blamed the USA for its trade and economic policies in the past, pretending that the Chinese would only be suitable and be content only to be just doing cooking and washing clothes, while they enjoyed the prestige of being the land of dreams, overwhelming every country to grow and become the biggest economy of the world? Did not the USA destroyed Japan's economy in the process, and coerced Germany to comply, so that it can remain the virtual economic superpower? Now, they are afraid of China doing the same to them. If only the doggies and sycophants, like Japan and Germany just wake up.
I think it is right to say that the trade deficit of the USA is purely self-inflicted. Banning sales of high-end chips to China, as a perfect example, does not help to reduce the USA's deficit. I do not believe that China is stopping USA exports into China. The real reason is that they are not competitive enough. Other than goods that the Chinese can buy much cheaper from China's own manufacturers, there is no limit to USA companies doing business in China, like Apple, Tesla, Micron, Qualcomm and Intel, besides food and beverage giants like McDonalds, Starbucks and others with thousands of outlets throughout China. These companies are making billions inside China, outside of the calculation of the USA deficit. If they cannot compete, just too bad and the USA cannot force Chinese competitors to increase prices to allow them to compete successfully in the Chinese market. Globalization is about making things cheaper based on comparative advantage and not on artificial policies to allow the rich cronies, campaign donors and sycophants to make obscene profits at the expense of consumers as in the USA itself.
Anonymous
Scott Bessent is truly delusional talking rubbish with his warp way of thinking. Why can't China do what it is doing to become prosperous? China does not steal or sanctioned others from doing what they are doing to be prosperous, unlike the USA. The USA prevented Japan and Germany from becoming too prosperous to overtake it.
ReplyDeleteIs it wrong to become prosperous through hard and honest work and producing better and cheaper stuff for export? If USA and other Western countries cannot compete against China, that is not China's problem. What are big businesses doing if not to become prosperous through further expansion? Will the USA tell those companies not to sell too much of their production to become prosperous. Are only USA companies allowed to do that. Is that what the USA mean by Rules Based Order?
On the other hand, can China also tell the USA to stop printing toilet papers and thus printing itself into prosperity by exporting its inflation to other countries. Can China complain about the USA weaponizing the US$ to make other countries poor and hapless? What is sauce for the goose must also be sauce for the gander. There cannot be rules for one party and not using the same rules for the other to follow.
The USA now wants all manufacturing to reshore to the USA. So, the USA is trying to become the only country to have prosperity while denying others from becoming prosperous. That is hypocrisy stinking to high heaven.