US remains oblivious to China's trade war attrition stamina

Source:Global Times Published: 2019/7/16 4:14:52

Data from the National Bureau of Statistics (NBS) revealed that China's economy grew 6.2 percent for Q2 2019, slightly dipping below the 6.4 recorded during Q1 expansion. The economy has remained stable during the first half of the year, standing at 6.3 percent. 

US President Donald Trump tweeted on Monday, "The United States Tariffs are having a major effect on companies wanting to leave China for non-tariffed countries. Thousands of companies are leaving. This is why China wants to make a deal with the US and wishes it had not broken the original deal in the first place."

Trump continued picking his one-string banjo and offered an arbitrary conclusion on how the tariffs have been paid for by China, not US taxpayers. Stranger still is how Trump cannot accept reality as his new-found theory has been refuted by US and international research institutes. Studies have indicated that most of the tariffs will be covered by American businesses and consumers.

By exaggerating China's GDP growth slow-down, the US has sent a message, signaling that Washington is anxious about the ongoing trade war. They have paid close attention to each and every single change China has experienced, hoping to find long-awaited signs of crippling behavior. 

Driven by such anxieties while strategizing Trump's 2020 re-election campaign, the White House administration has repeatedly overblown China's trade war losses, fabricating evidence and "facts" to sway public opinion.

In recent years, China's economy has experienced soft fluctuations and reduced double-digit growth, characteristics that were already in place before the US-launched trade war. The changes today are a natural reaction to national economic restructuring and continued upgrades. The trade war is merely an extra variable among normal circumstances. Even though the trade conflict has stretched for over one year, China's GDP growth has remained above 6 percent, a figure most major world economies crave. The country's economic performance has continued on within a reasonable range. 

Such facts demonstrate that China's economy will remain firm and resilient during attrition warfare.  

Of course, economic structure adjustments will invariably cause minor slowdowns affecting GDP growth. For the purposes of psychological warfare, the US points its finger at slow development, claiming it is the result of US tariffs. Not only is Washington trying to frighten China, but it also wants to strengthen trade war convictions while diminishing domestic dismay. 

It is strange how Washington's political tricks are accepted in the US. China's Q2 growth landed at 6.2 percent, almost double than the US, and it is still above them in overall economic development. Meanwhile, US media laughs at China's economic growth while ignoring how their country's growth lags behind. Such delusional behavior inspired by blind over-confidence cannot be easy to handle daily.

In the face of trade war pressure, China has adhered to economic structural adjustments, accelerated reform and opening-up, and made up for deficiencies exposed by the trade war. China will continue to move forward in an orderly fashion. The US seems to enjoy raising tariffs. Now, they have even gone so far as to implement an absurd policy that allows the government to subsidize farmers who have been left with unsaleable goods. The trade war has pushed China to become better and stronger, while the US continues on the same path of abnormal growth. This is the true panoramic view to today's global landscape.

It would be best if Washington stopped using fuzzy math like "thousands of companies" as a bluff. There is no credible reason to believe the US government could know China's domestic situation better than Beijing. Some businesses have relocated due to rising labor costs. At the same time, foreign entities have increased their investments in China due to the country's expansive market and business environment upgrades.

The latest data from China's Ministry of Commerce revealed that foreign investment in China jumped 7.2 percent from last year, reaching 478.33 billion yuan ($70.74 billion) for the first half of 2019, establishing 20,131 foreign-funded businesses. In June, total foreign investment utilized hit 8.5 percent year-on-year landing at almost 110 billion yuan, as global transnational investment continued its three-year slump, shifting from $1.9 trillion in 2015 to $1.3 trillion in 2018. Such hard facts are certainly more convincing than Washington's fuzzy math.

Data has revealed that China's trade with global markets is rising, with the US being the only exception. US restrictions on China imports did not stimulate domestic industrial manufacturing development since US businesses began importing goods from other countries. The US has yet to experience anything positive from the trade war, and Washington's self-proclaimed early victory is an attempt at lying to oneself and a nation.  The pack of lies generated by the US is destined to be exposed. Truth and facts will continue to bother politicians in Washington more than anyone else.

Posted in: EDITORIAL

blog comments powered by Disqus