Derailing China’s economic reforms is the only way the US can stop losing its leverage as the largest economy in the world, says political economist Shirley Ze Yu in the South China Morning Post. Improved market liberalization has every time helped China to improve its economic position, and the US has no other alternative to win this fight instead of blocking market forces in China, she argues.
Shirley Ze Yu:
It is understandable that the world’s predominant economic power wants to win an economic war against China, but how? One way is for the US economy to rise faster than China’s. The other is to stifle China’s rise.
It is hard to see any major technological breakthrough on the horizon in the US that would induce a significant economic take-off. Until that happens, the second-best strategy for the US is to damagethe Chinese economy.Some of China’s hi-tech companies are under siege. TikTok and WeChat have been put on the White House 45-day banned list on August 6. Trump administration officials have also suggested that Chinese companies listed in the US should be delisted by January 2022 if they cannot comply with the Securities and Exchange Commission’s audit requirements.Sifting through more than 70 years of the People’s Republic of China’s history, every period in which the Chinese economy has thrived has been accompanied by deeper liberal market reforms. Every major round of liberal market reform has unleashed enormous amounts of economic vitality.Greater market liberalisation will therefore put China on a more robust economic growth track, pushing the nation towards the commanding heights of the global economy even faster than current projections.
The US, in principle, wants to see a more liberal China. In practice, though, it will benefit from an illiberal China by winning the economic war.
Ultimately, it is better to defeat an enemy without having to fight, rather than winning every battle, according to ancient wisdom. Thus, the most expedient way of winning for the US would be to derail the liberal market reform
process in China.
More at the South China Morning Post.
Shirley Ze Yu is a speaker at the China Speakers Bureau. Do you need her at your (online) meeting or conference? Do get in touch or fill in our speakers’ request form.
Are you looking for more experts on the ongoing trade war between China and the US? Do check out this list.
