The truth about the US-China "trade war"

Lan Ha DNUM_BIZAGZCABI 09:01

(Baonghean.vn) - After many rounds of trade negotiations, the US and China have reached some common understandings. However, just when public opinion had high expectations that the trade war between the two countries was about to end, the White House suddenly announced a 25% customs tax on $50 billion worth of Chinese goods imported into the US.

What is behind this decision?

Ý đồ lớn của Mỹ trong “chiến tranh thương mại” với Trung Quốc. Ảnh: AP
America's big intentions in the "trade war" with China. Photo: AP

In an interview with Da Chieu newspaper on June 17, senior researcher at the Center for Foreign Policy Studies - Brookings Institution, Dr. Hoang Tinh of Harvard University's Political Science Department, said that the US-China trade war is not related to economics but is a political issue.

According to Hoang Tinh, the US wants to wage a trade war with China not to reduce the trade deficit. Beijing says it can handle the US $600 billion trade deficit with China, but the US basically cannot sell much to China. Even if Boeing tried harder, it could only sell China 7 more planes.

Even if the US sold all its soybeans and pork to China, it would only earn $120 billion, still far from the trade deficit. Of course, if the US sold China F-35 or F-22 stealth fighters, the trade deficit could be solved, but the US does not sell.

Therefore, the trade war is not to solve the problem of trade deficit, but trade deficit is just an external phenomenon and an excuse. The truth of the US-China trade war is that the US knows that if it continues to follow the current rules, it cannot continue playing. Hoang Tinh believes that the US has three major intentions in beating the "drums" of trade war with China.

First, through trade war to rewrite the rules of the world economy, making them more favorable to the US and "dethroning" China in the production chain. With the current rules of the game, the US believes that it cannot win against China, so it must break multilateral negotiations and conduct bilateral negotiations.

For example, the US negotiates with Germany or Japan to shape the rules of the game between the US and Germany or between the US and Japan. This is why the US strikes hard against its own allies.

Second, restructuring the world's production chain. Why does China want to negotiate multilaterally and carry out reform and opening up?

That is because China dominates the world's current production chain, no matter what is produced, there is a Chinese "link". For example: In cars, computers, even missiles, there are components made in China, such as in a German BMW, the engine is made in Germany; the clutch and gearbox are made in Japan; the control board is from Korea, the car doors are from Vietnam and the tires are from China, after being assembled, they are sold all over the world.

Meanwhile, the US wants to eliminate the Chinese “link”. Once the US and Germany reach a new trade agreement, it is very likely that in order to protect this agreement and to show respect for the US rules of the game, Germany will no longer buy tires made in China, thereby changing the entire production chain model. This is the US’s “pull the plug” tactic against China.

Third, through the trade war, the US wants to rectify the so-called “united front” of Western countries, applying harsh measures to China, a country labeled as “not having a market economy”. In order to organize a united front to contain China, the US has raised the issue of ideological form, so the trade war initiated by the US is not an economic issue but a political one.

Therefore, according to Hoang Tinh, at the recent Boao Forum, Chinese President Xi Jinping announced that to deal with the US trade war, China has two measures: One is to persist in reform and opening up, changing backward and unadvanced production relations. The other is to definitely follow the multilateral path, protecting the production chain.

According to AP
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The truth about the US-China "trade war"
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