{"id":39346,"date":"2018-05-17T11:00:40","date_gmt":"2018-05-17T01:00:40","guid":{"rendered":"https:\/\/www.aspistrategist.ru\/?p=39346"},"modified":"2018-05-16T15:18:30","modified_gmt":"2018-05-16T05:18:30","slug":"the-gift-that-keeps-on-giving-to-china","status":"publish","type":"post","link":"https:\/\/www.aspistrategist.ru\/the-gift-that-keeps-on-giving-to-china\/","title":{"rendered":"The gift that keeps on giving\u2014to China"},"content":{"rendered":"
<\/figure>\n

All bad management, a business guru once remarked, is taught by example. Donald Trump is teaching a master class on how not<\/em> to serve as America\u2019s chief executive. By abandoning the thoughtful policymaking of his predecessors in favour of a presidency modelled on reality TV, Trump has failed to articulate anything resembling a credible national strategy.<\/p>\n

Instead, what Trump has delivered during his first 16\u00a0months in office is a blow to American influence, most notably in Asia. Trump\u2019s misguided economic nationalism\u2014embodied in new sanctions, tariffs and scuttled trade deals\u2014has weakened the United States in the Pacific Rim, and created fresh opportunities for America\u2019s adversaries. Trump\u2019s threatened trade war with China is a case in point.<\/p>\n

To be sure, China\u2019s predatory economic practices must be challenged. In reneging on promises of reform and further market opening<\/a>, President\u00a0Xi Jinping is reinforcing the state sector against foreign competition while ignoring intellectual property theft. But confronting China will require allies; Trump\u2019s approach will only leave the\u00a0US more isolated.<\/p>\n

Even a cursory examination of China\u2019s economic ties with America\u2019s Asian allies illustrates just how ineffective Trump\u2019s attacks on free trade will be. China is the economic heart of Southeast Asia<\/a>, accounting for 21%\u00a0of the region\u2019s exports in\u00a02015. China is also the region\u2019s largest importer, with much of the trade from neighbouring countries comprising electronics and machinery, underscoring China\u2019s role as Asia\u2019s \u2018processing hub<\/a>\u2019.<\/p>\n

Compare these numbers to Southeast Asia\u2019s trade with the\u00a0US, Europe and Japan: in\u00a02015, imports from these economies<\/a> accounted for over 25%\u00a0of the region\u2019s total\u2014only slightly more than China\u2019s share. Elsewhere in the region,\u00a025%\u00a0of South Korea<\/a>\u2018s exports go to China. For Australia, which counts China as its most important trade partner<\/a>, the share is\u00a028%, compared to just\u00a07% for the\u00a0US, Australia\u2019s third-largest export market.<\/p>\n

The political implication of these figures is obvious: China is now Asia\u2019s playmaker, and the\u00a0US is taking a seat on the bench. Seven of the 11\u00a0countries that signed the Trans-Pacific Partnership<\/a>\u2014the Obama-era initiative<\/a> to expand trade with Asia that Trump rejected<\/a> during his first month in office\u2014are now participating in the Regional Comprehensive Economic Partnership, China\u2019s rival trade pact. All 10\u00a0members of the Association of Southeast Asian Nations are at the table, along with Australia, New Zealand, South Korea, Japan and India, which have free-trade agreements with ASEAN.<\/p>\n

Australia is a good example of a US\u00a0ally whose leaders share America\u2019s concerns about China\u2019s rising power but also understand the economic imperative of staying in China\u2019s graces. Exports of natural resources, like iron and coal, account for roughly 20%\u00a0of Australia\u2019s\u00a0GDP and dominate its economic relationship with China. Australians rightly worry<\/a> about becoming collateral damage in Trump\u2019s bilateral trade dispute.<\/p>\n

The consequences of Trump\u2019s trade strategy aren\u2019t confined to Asia. In Latin America, Trump is not only harming American competitiveness; he is also helping Chinese players establish themselves. While the\u00a0US remains the region\u2019s leading trade partner, its rising protectionism is allowing China to leverage its economic clout to expand its presence and influence. China now ranks in the top-five export markets<\/a> for 12\u00a0of Latin America\u2019s 20\u00a0countries, and is the region\u2019s biggest customer for raw materials<\/a>. And Latin America is second only to Asia in terms of Chinese investment. Over the past decade, China has committed $140\u00a0billion in loans<\/a> to the region, and Xi has pledged $250\u00a0billion in direct investment by\u00a02019.<\/p>\n

Trump seems oblivious to the fact that his protectionism has only made China\u2019s work easier. As Trump threatens to renegotiate NAFTA \u2018forever\u2019<\/a>, slashes foreign aid and plans border walls, his counterpart is emerging as the global champion of free trade and multilateral cooperation. Xi\u00a0has visited Latin America three times since\u00a02014, and in January, China announced<\/a> that Latin America will be included in China\u2019s massive Belt and Road Initiative. The message to the region is clear: China is here, and it intends to stay.<\/p>\n

Whatever Trump expects from his trade bluster, the effect on American influence around the Pacific Rim\u2014and beyond\u2014should not be underestimated. While China\u2019s authoritarian regime faces major challenges in translating its economic might into soft power, its leaders are clearly benefiting by advocating for open global trade.<\/p>\n

Previous US\u00a0presidents have worked hard to craft an integrated economic and strategic approach to America\u2019s relationship with Asia. In contrast, Trump is pitting the\u00a0US against its Asian allies. Closing this rift will not be easy. Ironically enough, when the time comes to repair the damage, Trump\u2019s campaign vow\u2014\u2018America First\u2019\u2014will point to where American leaders need to begin.<\/p>\n","protected":false},"excerpt":{"rendered":"

All bad management, a business guru once remarked, is taught by example. Donald Trump is teaching a master class on how not to serve as America\u2019s chief executive. By abandoning the thoughtful policymaking of his …<\/p>\n","protected":false},"author":668,"featured_media":39347,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"footnotes":""},"categories":[1],"tags":[1428,31],"class_list":["post-39346","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-donald-trump","tag-united-states"],"acf":[],"yoast_head":"\nThe gift that keeps on giving\u2014to China | The Strategist<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.aspistrategist.ru\/the-gift-that-keeps-on-giving-to-china\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The gift that keeps on giving\u2014to China | The Strategist\" \/>\n<meta property=\"og:description\" content=\"All bad management, a business guru once remarked, is taught by example. 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