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Liu Zhiqin: US eager to drag China down at own expense

2019-09-06

By Liu Zhiqin    Source: Global Times    Published: 2019-9-5


No person or country in this world can defeat the US. In the end, it can only be one of its own presidents who triumphs, and Trump may be that very president.


It is US President Donald Trump who has damaged the credibility of the US system. He undermined the country's foundation, the so-called "separation of powers."


Trump likes issuing orders, and he changes his mind so frequently that it has almost become a routine. As a result, few countries in the world can seriously reason with the US.


His stubborn and arrogant immigration policy has completely deviated from the principles of democracy and freedom that the US has always advocated.


It is Trump who has driven the US into an unprecedented credit crisis. Since taking office, Trump has been wielding the "tariff stick" to make enemies everywhere. Yet tariffs, imposed on Chinese goods, also hurt US companies. US businesses have asked Trump to stop the tariff war. In fact, the US economy has already seen increasing signs that it is unable to handle the double pressure brought by the tariff stick, as psychological pressure and market pressure may risk plunging the US into a recession.


It is still too early to say that the US economy has entered a recession cycle, but it is also an undeniable fact that there are signs pointing to recession, and many in the US are already aware of the various abnormal phenomena and signals which herald a big economic "earthquake." The emergence of such an earthquake, which would drive the US economy into an unavoidable recession, is not impossible, and its probability is growing. The world economy has its development cycles, but some human factors have accelerated the arrival of this recession cycle. The more recklessly Trump acts, the faster the US economy will decline.


It is Trump who has made the US pay the cost of his "smart move." The foolish China policy adopted by the Trump administration is a major reason why the US economy is now on the verge of recession. The Trump administration thought they could have everything under control in a trade war, but the fact is that they have lost any semblance of control.


The US originally planned to use tariffs to put pressure on China so as to constrain the development potential of the Chinese market and squeeze the country's surplus value. But the reality is that the Chinese economy still maintains its normal development momentum, instead of being constrained by the "trade extremism" of the US. China has inexhaustible surplus value, and continues to create new values for the benefit of mankind. Unfortunately, it is the US itself that has exhausted its vitality, pouring too much manpower, material resources and financial resources into the trade war. The US government never foresaw that its trade war with China would be a war of attrition, a process full of trouble, helplessness and pain.


Now there seems to be a picture in front of my eyes, which shows that China and the US are engaged in a rock climbing competition. China is slightly ahead of the US, but the US is climbing with only one hand because it is dragging China's foot with the other in the hope of pulling China down. While sinking, the US wants to collapse China first, whatever the cost. But the reality will never disappoint us: it may be a historic choice for the US to eventually sound the death knell, and Trump should take the credit.


The US may still prosper for decades, but if it doesn't change some of its foolhardy policies, it will begin to wane. Just like in a rock climbing competition, it is inevitable that a competitor will fall behind if they don't make any progress. The rock climbing competition between China and the US needs fairness and justice, rather than tricks to hold the other party back. Of course, the various measures the US is currently taking against China are no longer tricks, but outright bullying.


Yet, no matter what means the US employs to prevent China from climbing higher, China will be able to successfully reach its goal.


The author is a senior fellow of the Chongyang Institute for Financial Studies at Renmin University of China.  

Key Words: CHINA-US   tariffs   RDCY   Liu Zhiqin  

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