International

‘China has to resolutely respond to U.S.’

State-run daily says Washington sense threat from China’s rise as a strategic rival

 

China has launched a long campaign to win the trade war with the U.S., which is targeting Beijing’s transition to a digitally advanced economy.

A hard hitting commentary in the People’s Daily made it plain that the trade war would be a marathon and not a sprint. “The Trump administration regards China as its ‘strategic competitor’ which ‘threatens’ the U.S. in terms of geopolitics, strategic security, economy and trade and technology, as well as ideology. Its China policy, based on zero-sum mentality, will not change as China hopes it to. Therefore, China has to cast away illusions and resolutely respond to the U.S.,” said a post.

The article asserted that Washington has adopted a policy to target China’s rise as a strategic rival. “China knows
that the trade war is inevitable. The U.S. is unwilling to see China
develop and prosper and then surpass it; therefore it devotes great efforts to maintain its long-time hegemony and the so-called strategic advantages.”

Going high-tech

Analysts say that Made-in-China 2025 (MIC 2025) that promises to make Beijing the global engine of advanced manufacturing, is the real target of U.S. President Donald Trump’s trade war. In an interview with Bloomberg in March, White House adviser Peter Navarro was unambiguous in saying that U.S. tariffs were targeting the “Made in China 2025” strategy. But observers point out that it may be too late to wreck the strategy.

“China in my view brazenly has released this China 2025 plan that basically told the rest of the world, ‘We’re going to dominate every single emerging industry of the future, and therefore your economies aren’t going to have a future,”’ Mr. Navarro
asserted.

But observers, point out that it may be too late to wreck MIC 2025, through Mr. Trump’s escalating trade war.

For starters, China is responding energetically to the heavy domestic demand for white collar jobs in high-end manufacturing, including those of self-driving cars, drones and other areas such as new materials and biomedicine.

Compared to 5.9 million graduates that were stepping out
of Universities in 2000, there were 35.1 million students who were
flooding out of campuses. The surge in demand for quality jobs is
pushing MIC 2025’s advance from below.

China is also expected to dramatically expand funding for semiconductor chips — its area of vulnerability within the MIC-2025 framework. An analysis by Fitch Solutions concludes that under the MIC 2025 effort, another tranche of $18.1 billion could be pumped into the China Integrated Circuit Industry Investment Fund, which stood at $ 20.9 billion in 2014.

According to a Financial Times report, China’s telecom heavyweight, Huawei, already designs its own chips through a wholly owned subsidiary called HiSilicon, which ranks as the world’s seventh largest chip design company.

Outside the hi-tech domain, China has plans to weather the Mr. Trump’s
trade war, in other ways.

Further, China is in a good position to import products from other countries as an alternative to the U.S. Whereas one-fifth of U.S. imports are from China, Beijing imports only 9.9% of its requirement from the U.S.

A Chinese official told state-run Xinhua news agency that once Washington exits the Chinese market, it will be hard for it to stage a comeback.

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Printable version | Jun 6, 2020 8:00:36 AM | https://www.thehindu.com/news/international/china-has-to-resolutely-respond-to-us/article24786134.ece

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