My Take | China’s economic strategy is not about overproduction, dumping
- As West steps up trade war, Beijing needs to develop strategic hi-tech fields and set up robust global supply chains for its goods and services
There is now a consensus discourse that China is not doing what is needed to fix its economy. Instead of stimulating domestic demand – as Western economies but especially the American economy usually do in times like these – it is resorting to the old trick of trying to export its way out of its economic troubles. But that won’t do any more.
Western leaders and experts say it won’t work. Then they declare they won’t let the Chinese do it anyway to prevent them from hurting others.
Beijing’s version is a bit different, and it’s not exactly what Western critics claim it is doing. It may yet fail, but likely not for the reasons the critics have cited.
Under the label “overproduction”, the Western criticism is really launching a new trade war as part of its full-spectrum containment of China and its alleged threats.
It’s typical, when you start a war, whether military or trade, you blame the other guy for making you do it.
So you have the latest attack from US Ambassador to Japan Rahm Emanuel. In an interview with Bloomberg, he claims China is exporting its domestic economic problems to the rest of the world, and that the US is strengthening its resolve to help its allies to counter China from dumping its cheap goods on them.