The US should beware of over-confidence in its trade disputes with China

Apr 25, 2018, Beijing, China

President Trump spoke too soon when he said that trade disputes were "easy to win".


In fact, there are many ways the US can lose, and very few ways it could win.



The World Wants to Trade Freely


The WTO strongly opposes any unilateral interference with international trade. 


No other country has yet supported the US action.


Along with China and the US, the European Union is one of the world's largest economic powers.


The "Transatlantic Trade and Investment Partnership Agreement" or "TTIP" is being negotiated between the European Union and the United States as a way of strengthening free trade across the Atlantic.


Transatlantic trade still accounts for one third of global trade in goods and more than 40% of trade in services. In addition, for most countries, the EU or the United States is also their largest trading and investment partner.  



At the Davos Forum in January 2018, EU Trade Commissioner Malmström said, "We are willing to reach a sustainable, mutually beneficial, and good trade agreement and adopt it. This approach promotes European values and 

establishes alliances and friendships with countries around the world."


Thus it can be seen that cutting off from the outside world and conflict will never be a solution in an open and diverse world trading system.


If the United States moves to restrict free trade, the European Union could look elsewhere for reliable political partners.


America is no longer the only option for China


China's trade relationships are widening and deepening, making it less reliant on trade with any single country. Two developments make this clear.    


The Belt and Road Initiative


This will not only improve China's trade relationships in Europe and Asia, but forge a strong link with the other great economic power in the area, the European Union.


The Regional Comprehensive Economic Partnership  


While the "Belt and Road Initiative" strengthens trade links with countries to the west of China, the "Regional Comprehensive Economic Partnership" does the same with the Pacific Ocean region.


If the United States continues to indulge in trade disputes, China and the rest of the world are in a good position to continue trading freely.  


Only one country is likely to suffer the most if the United States continues with its current policies, and that is the United States itself.   


Words and Phrases




Unpopular policies such as unilateral disarmament were ditched.




The parliament described the decree as interference in the republic's internal affairs.


account for


The really heavy redundancy costs have been accounted for.




We have now set ourselves the urgent task of completing the transatlantic trade and investment partnership with the US.




It is my firm belief that an effective partnership approach between police and the public is absolutely necessary.


EU Trade Commissioner      


The timing is particularly awkward for Baroness Ashton, the European Trade Commissioner, who is seeking reappointment to the next Commission.




We will work hard to transform the economic development pattern, restructure the economy and set out on a path of balanced and sustainable development.


mutually beneficial


We should develop a pattern of mutually beneficial and win-win cooperation.


establish alliances


To establish strategic alliances so as to strive to be the leader of generic drugs through collaboration and competition.


at the expense of


According to this study, women have made notable gains at the expense of men.


the Regional Comprehensive Economic Partnership


The negotiation on the Regional Comprehensive Economic Partnership (RCEP) is the largest trade agreement negotiation with the most extensive participation in East Asia, and the RCEP is integration of existing mature free trade areas.


the Belt and Road Initiative


These early harvests have truly pointed to the broad prospects the Belt and Road Initiative will bring.


current policies


As China entered WTO, current policies and regulations have been reviewed and revised.




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