The World Can Benefit From China's Rise - Tun Dr Mahathir Ho Wah Foon

Beijing, which has stayed calm and patient with Washington over the past one year in the escalating trade war, has finally launched a counterstrike at the United States, retorting “false accusations” and holding Washington full responsibility for the breakdown in talks.

Last Sunday, a defiant China released a White Paper that states its current position in the trade war and vows to safeguard its own interest and sovereignty against “unreasonable demands” of US negotiators.

A white paper is an authoritative report of a government to inform readers concisely about a complex issue and presents the the government’s philosophy on the matter.

Trade and economic negotiations between the world’s two largest economies came to a halt in early May after 11 rounds of talks from March 2018.

China’s White Paper was unveiled two days after China’s Ministry of Commerce announced it would publish a list of “non-reliable” foreign companies that hurt Chinese interest, as a retaliation against America’s blacklisting of 5G-technology giant Huawei and other Chinese tech companies.

Foreign individuals and firms that block the supply chain, or act to endanger the business of Chinese firms will be blacklisted. The first casualty appears to be Federal Express, alleged to have diverted Huawei’s deliveries.

Both the “non-reliable list” and the White Paper emerged following President Donald Trump’s May 10 order to impose higher tariffs on US$200bil (RM832bil) worth of China’s exports into the US and the blacklisting of Huawei Technologies Company.

In the White Paper titled China’s Position on the China-US Economic and Trade Consultations released on June 2, Beijing accuses Washington of making unreasonable demands and causing the talks to halt.

The document argues that Trump’s decision to raise tariffs on US$200bil of Chinese goods on May 10 had breached an agreement reached by him and Chinese President Xi Jinping.

“These acts contradicted the agreement reached by the two presidents to ease friction through consultation – and the expectations of people around the world – casting a shadow over the bilateral economic and trade consultations and world economic growth.”

The White Paper declares that “red lines” could not be crossed: “China will not give ground on issues of principle. The right to development cannot be sacrificed, still the less can sovereignty be undermined.”

Taking an obvious swipe at President Trump, the White Paper says the trade war “has not made America great again”, but has instead hurt its own interest and global economy. The trade frictions have raised production costs and retail prices in the US, reduced its economic output and jobs, and decreased its exports to China, it elaborates with data.

In a response to the White Paper, the US administration said last Monday that China was pursuing a “blame game” and misrepresented the trade negotiations.

In a joint statement, the US Trade Representative’s office and the US Treasury reiterated their earlier statements that China’s negotiators had “back-pedalled” on important elements of a deal that had been largely agreed, including on an enforcement clause.

“Our insistence on detailed and enforceable commitments from the Chinese in no way constitutes a threat to Chinese sovereignty,” USTR and the Treasury said.

According to some analysts interviewed by Bloomberg, the White Paper implies that the current trade war could be a protracted conflict between the two superpowers, although China has not closed its doors to negotiations.

Defending the White Paper, Global Times of China says in its editorial last week:

“What China is safeguarding and defending is not only China’s interests and development rights, but more importantly, the global industrial chain, as well as international morality, principles and order.

“The US is transforming from a founder into a saboteur of global morality, principles and order China’s resistance to US bullying has a worldwide and historical significance. The defensive line built by China can in fact shield many other countries.”

The White Paper, citing instances, shows that the US negotiators lacked sincerity to conclude trade deals with the Chinese.

State-owned China Daily notes that by raising “unrealistic demands” on China’s sovereign affairs in the last round of talks, the US had centred on making unacceptable demands and then accusing Beijing of causing talk failure.

In its editorial on June 2, China Daily says: “Such a way of handling the trade negotiations is a ploy used by the US to find new excuses to wage an economic war against China. It makes people wonder whether the US does seek to narrow its trade deficit with China as it claims, or instead is seeking to suppress China’s development.”

For the Chinese who had waited for a national stand on the trade war, it is most heartening to see the White Paper containing such phrases:

“China will brave the headwinds and the US government won’t be able to contain the country’s development through its bullying.”

“China is open for negotiation, but will fight to the end if needed.”“China will not compromise on major issues of principles. “Red lines” cannot be crossed in bilateral negotiations, the right to development cannot be sacrificed, and sovereignty cannot be undermined.”

For the Chinese people, who still cannot forget China’s bitter history of aggression from the West and Japanese occupation, it will be completely non-sensible to allow any foreign power to bully their country again, particularly now that the Middle Kingdom is also a power.

Indeed, the trade war and the blacklisting of Huawei have led the Chinese to be more nationalistic and determined to develop their indigenous technology and domestic market.

But to be sure, not only the Chinese are offended by the Trump administration in their public statements in the past months, the rest of the world is annoyed and worried.

Over the past year, under Trump’s “American first” policy, Washington has not only thrown punches at China – its biggest trading partner, but has ignored international ethics and rules.

It is also stirring up conflicts and tensions in Iran and the Middle East, South America, South China Sea and Straits of Taiwan.

Global stock markets have been rattled. According to Stephen Gandel, a Bloomberg Opinion columnist, Trump’s trade war has cost investors up to US$7 trillion (RM30 trillion).

The World Bank and IMF have lowered global economic growth several times, citing the trade war as one of the key factors.

Increasingly, more countries are speaking up against the US – though many of US allies did it in a veiled manner.

One of the most outspoken world leaders is Malaysian Prime Minister Tun Dr Mahathir Mohamad, who called the US-initiated trade war on China “stupid” as it disturbs economic progress of countries, including Malaysia.

“We would not like to have the US-China trade war if more reasonable minds take over. We want China to be rich enough for it to be a great market for us and the rest of the world,” Dr Mahathir said at the Foreign Correspondents’ Club of Japan on May 30.

Dr Mahathir said the world can benefit from China’s rise, and leaders need to accept the fact that the Chinese have become very rich and are using their money to enhance their positions.

The 94-year old leader, who visited Huawei in late April while attending the Belt and Road Summit in Beijing, also declared Malaysia would use Huawei’s 5-G technology as much as possible as it has advanced technology.

The US Commerce Department in May placed Huawei on its so-called Entity List, banning US companies from selling parts or software to Huawei without US government approval.

At the Shangri-La Dialogue concluded in Singapore last Sunday, some US allies that used to isolate China in the annual security conference had aired their modified stance.

And leading the pack was Singapore, a close ally of US in the region.

“Countries have to accept that China will continue to grow and strengthen, and that it is neither possible nor wise for them to prevent this from happening,” said Prime Minister Lee Hsien Loong at the conference, attended by US Acting Secretary of Defence Patrick Shanahan and Chinese Defence Minister Wei Fenghe.

The Singapore leader added in his keynote speech: “China will have its own legitimate interests and ambitions, including to develop indigenously advanced technologies like infocomms and artificial intelligence.”