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by simonh 2551 days ago
I understand that and I agree China's trade practices were unfair and needed to be addressed. The way to do that is with co-ordinated and concerted international pressure based on consensus. Up against a united international front, China would have little option but to concede.

However Trump is a nationalist and a unilateralist so he's simply incapable of doing it. Incidentally this is why nationalists are almost universally also climate change deniers - because climate change is a global problem that requires global collaboration and agreement, which Nationalists can't stomach. It's useful to understand the political forces behind a lot of these policies and therefore the connections between them.

Instead of working with allies, the US is lashing out at both China and the tech companies trading with it as a group. This is forcing the tech companies to ally with China and start tech collaboration and transfer projects with them in order to save themselves. The Hygon Dhyana and Zhaoxin projects are examples of this. So instead of the non-Chinese international community being rallied against China, they are being forced in bed with them. Doing so also involves tech companies withdrawing investment and resources from the USA in order to limit their exposure to US trade sanctions.

Long term, it's probably the single biggest and most counter-productive trade and technological development own goal in history. Pulling out of the Iran deal might beat it though. The way it's pushed Europe into collaborating with Iran on financial and trade links, sidelining the US payments systems, while also giving Iran the freedom to breach enrichment limits is definitely up there.

1 comments

I couldn't agree with you more, the only way to deal with China is a united front, and China knows that, that's the reason they have been reducing tariffs for import from other countries.