China’s Economic Warfare against world ,As Growth Slows, Beijing’s Moves are Drawing a Global Backlash

 

Chinese officials often say that Beijing does not deliberately seek a trade surplus. Deliberate or not, China’s trade imbalances are not sustainable for the rest of the world, and China should not be surprised if foreign governments start to respond more aggressively. Beijing is likely to reject measures similar to those the United States and its partners adopted in the 1980s to address Japan’s trade imbalances, such as an exchange rate arrangement resembling the Plaza Accords or Louvre Accords. Tariff hikes on Chinese imports, another policy available to foreign governments, may only provide temporary relief; when the Trump administration imposed such levies, many Chinese suppliers were able to skirt these regulations by shipping goods through third countries before they reached their final destinations in the United States. With few effective policy options and an unwilling negotiator in Beijing, Western governments in particular will consider increasingly draconian restrictions on Chinese trade. That shock may be what is necessary for China to take structural reforms seriously, for the sake of its own economic health and in the hope of avoiding an irreparable split in global trade.