Sino-American relationships have been in free fall ever since US President Donald Trump unleashed his so-called “reciprocal” tariffs on the world on April 2. Financial turmoil in the wake of Trump’s tariff tantrum caused the Trump administration to pause its “reciprocal” tariffs on the world, except for those on China. To bulldoze China into submission, the US has ratcheted up tariffs on China to a capricious 245 percent.
The latest decision by the Office of the United States Trade Representative to impose levies on Chinese vessels docking at American ports leaves no doubt that the Trump administration is targeting China and is prepared to widen the trade war to other arenas, despite lawsuits accusing the president of the unconstitutional use of tariff power, rising protests across the country, and deepening market anxiety.
The Trump administration’s high-pressure tactics led Xia Baolong, director of the Hong Kong and Macao Work Office of the Communist Party of China Central Committee, to declare in a recent speech in Hong Kong that “the US is not just going after our taxes, but after our survival”.
Yet, experienced China observers and international relations experts in the US are not optimistic that the US would win a US-China trade war. Several have pointed out that the Chinese people have rallied round their leaders in fighting US threats and bullying tactics, and that the US has inflicted great damage on itself by turning the global trading and economic system on its head, and undermining its standing as a trustworthy partner.
Veteran journalist Thomas Friedman of the New York Times, author of the globalization classic The World is Flat, gave vent to the most scathing criticisms of Trump’s tactics in a recent podcast.
After four months of travels in China, Friedman observed that China’s economy, after the pandemic, has changed remarkably. He discovered that cutthroat competition in China’s domestic market has led enterprises that managed to survive and thrive to become global leaders in 21st century technologies, including batteries, e-vehicles, autonomous vehicles, drones and robotics, and that China is not far behind the US in generative artificial intelligence. Friedman said he is not opposed to tariffs per se, but that the American politicians who thought China “cannot innovate” are “clowns”. He thought the US’ proper approach toward dealing with China could include incremental tariffs, but that it would be more strategic to invite Chinese enterprises to invest in the US. Chinese enterprises could create jobs in the US and transfer technologies to American firms. The US and China should work together to resolve the three gravest problems affecting our planet — extreme weather, AI governance and disorder.
The key distinction between these traders and investors and the Washington political elites is that the former are people connected to the real world who understand the real problems. Out of self-interest, they will not hesitate to sound the alarm when they see catastrophe coming. To resolve the US-China trade war, engagement with real people who could help find real solutions is of paramount importance
Meanwhile, polls conducted by the Pew Research Center among 3,605 US adults, after Trump ramped up tariffs on China but before his “liberation day”, show American people’s negative view of China has declined slightly for the first time in five years. The number of Americans who view China as an enemy and as the greatest threat to the country have declined by 10 and 8 percentage points respectively.
At the government-to-government level, there appears to be a breakdown of communication. Beijing’s appointment of Li Chenggang, who was China’s top envoy to the World Trade Organization, as the new chief trade negotiator signals China’s strong commitment to the rules-based, multilateral trading system. China will not be pushed around by threats and intimidation but will be open to negotiations as equals and in a professional manner.
There is much that people and business in China, including in the Hong Kong Special Administrative Region, supposedly the most open and globally connected part of the country, can do to help in the fight against Trump’s trade war.
Now is a good time to correct the American people’s misguided perceptions of China. Trump’s abuse of power, manifested by his disregard for the rule of law, his investigation of top law firms that crossed him in the past, his malicious investigation of former federal employees after meeting with 31 year-old conspiracy theorist Laura Loomer, and his intimidation of top universities and arbitrary firing of senior officials and generals, drive home to the American people the reality that their democratically elected leaders are more authoritarian than many of the allegedly authoritarian regimes that their leaders have denounced.
As Friedman noted in his podcast, the Chinese people have a lot of freedom to innovate and venture into new businesses; and China has a long political tradition of governance by mandarins’ who are “serious people” bent on improving the livelihood of their country’s citizens. Through its contacts with American businesses and opinion leaders, Hong Kong should not pass up the opportunity to help the American people acquire a more nuanced view of China.
The American people, including its political leaders and officials, are crisscrossed with diverse values and motivations. As is well reported, within Trump’s motley cabinet, there is a constant tussle between the “maximalist” China hawks and the more pragmatic “restrainers”. China, including the HKSAR, should not abandon its efforts to reach out to the different factions within America, whether in the White House, the State Department, the Commerce Department, or in Congress, to better analyze, interpret and hopefully re-shape American opinion.
Engaging American thinktanks and scholars is no less important. While there are some on the extreme right with which it would be futile to engage, it is important to keep in touch with those who continue to have an open mind and hence a more objective assessment of China. They do so because they are true to their decades-long research and investigation. It is important to maintain dialogue with these scholars and opinion leaders who could help tilt the American public more to the center.
Last but not least, business-to-business ties must continue to be maintained and nurtured. China, including the HKSAR, has broad and highly varied economic and trade relationships with the US as the result of decades of close economic partnership in multiple domains — including trade, investment, joint ventures in manufacturing and R&D, finance, aviation, shipping, transport and logistics. Out of economic self-interest, US businesses have long functioned as the staunchest allies of China and a free trading HKSAR against US protectionist measures. There is nothing wrong with people from different nations acting in accordance with their national interests. The key distinction between these traders and investors and the Washington political elites is that the former are people connected to the real world who understand the real problems. Out of self-interest, they will not hesitate to sound the alarm when they see catastrophe coming. To resolve the US-China trade war, engagement with real people who could help find real solutions is of paramount importance.
The author is convener of the Executive Council and a legislator.
The views do not necessarily reflect those of China Daily.
