"Foreign Policy": If China wants to defuse the trade war, it must do something more bold

With the decision of the administration of US President Donald Trump to increase customs duties on Chinese imports to reach 104%, China responded to raising the fees on American goods to 84%, which is a significant increase from the previous 34%, but the American president did not stop there, as he decided to increase customs duties on Chinese imports again to reach 145%. As for Beijing, the political message behind this is clear, which is that the United States uses trade as a weapon that goes beyond the scope of economic rationality. American that China’s response to American customs duties was emotional, as it was to face Trump’s threats with reprisals to highlight determination and strength, which was evident in the official statements and Chinese official media openings that Beijing has & quot; adequate tools & quot; And & quot; complete confidence & quot; To respond. However, the Chinese dealing with this file was undoubtedly emotionally, and it represents & ndash; according to the magazine- a strategic error. The magazine explained that mutual customs duties may calm nationalist feelings, but it is entering China in a cycle in which the structural disparity in trade is in the interest of Washington. Beijing, in an effort to increase pressure on Washington, tried to expand its tools by imposing controls on the export of rare metals, intensifying auditing on American companies, and delaying customs clearance, but these tools have side effects, as they frighten investors, especially foreigners, at a time when Beijing tries to attract capital and stabilize the markets, as it shakes supply chains, and harms potential allies. The magazine believes that if China wants to defuse the trade war, it must do something more daring, which is the heart of the scenario, meaning that Beijing must accelerate the conclusion of trade deals and investment with its main neighbors and partners, and this includes breaking the stalemate in the free trade agreement between China, Japan and South Korea, who has long been troubled, and enhances the implementation of the comprehensive regional economic partnership agreement & quot; RCEP & quot, which is a free trade agreement that brings together the ten members of the ASEAN Association and the six member states of the Free Trade Agreement (China, Japan, India, South Korea, Australia and New Zealand), and re -revitalize the dialogue with the European Union. That the latest attacks of American customs tariffs convert Chinese exports to its markets, meaning that if the United States closes its doors, Chinese goods may flow to other places, which nourishes protectionist reactions, and the European Union may soon follow the example of Washington by imposing its own customs definitions. While recharge operations in the past helped to avoid customs tariffs, it must be remedied that if the United States takes strict measures against recharge operations, the smartest path before Beijing in this case is to build strong partnerships based on the bases with the Association of Southeast Asian countries & quot; ASEAN & quot; and not just directing trade through it.

as the American magazine alerted to China’s relations with Japan, South Korea, India and the Philippines are still tense. Historical grievances, regional conflicts and concerns over economic coercion have affected these relations. But the common uncertainty about the reliability of the United States leaves room for rebuilding confidence between China on the one hand and these countries on the other hand. Restore relations in the region in a manner based on real economic cooperation can help China convert its image from a sabotage power into a regional power and heaviness. It is clear to the liberalization of trade. Asia, areas whose political and economic stability often depends on strong demand for exports. Although China granted partial exemptions from customs duties to a selected group of the least developed countries, there are still great restrictions. The most urgent task in front of Beijing is to address the main challenge of the weak consumption of Chinese families. For more than a decade, Beijing has pledged to switch towards a consumption -based economy. Also, fears of the & quot; Cofide-19 & quot; Chinese families have made more reluctance to risk. Chinese President Xi Jinping promised to unleash & quot; For consumption in response to Trump customs duties. There are reports that senior Chinese officials are discussing, behind closed doors, to accelerate existing proposals for a long time, which is supported by home appliances and electric vehicles, supporting rural income, and creating a national fund for real estate stability. These policies can be applied in stages, with amendment of their pace based on the market situation and geopolitical developments. The local & quot;

The magazine added that one of the goals offered by Chinese analysts and strategists is to increase local consumption by 30% by 2030, or approximately 3 trillion dollars of additional annual demand. & Nbsp; In theory, this can compensate for the loss of access to the American market, and creates a new attraction for global trade. But to achieve this, Beijing must move quickly, especially as it is compared to Washington, still has more freedom to make political decisions. The prices of assets in China are low, inflation is low, and the political system there allows coordinated action, which if it succeeds in, it may overcome the disturbances with brilliantly greater than its competitors. Until it is in parallel with the above, the dialogue with Washington must also be continued, as showing the real power is not in isolation, but in participation. Also, mature driving means staying in the game even when the other side tries to turn the table. Therefore, Beijing must present itself as a constructive and consistent partner in global issues and not remain confined to the stance of the reaction, and move towards determining the rules of engagement itself. Even if this requires the imposition of customs duties and other restrictions. & nbsp;

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