POREG VIEW: This New York Times report by Mark Landler and Sewell Chan in effect highlights the limits of one-upmanship game in matters trade and finance. In recent months, beset with a host of problems at home, Beijing has tried to divert attention away from its soft underbelly, and became aggressive with near term goals in relations with neighbours as well as its biggest market.
As the world looked at it as much in awe as in dumb disbelief, the Chinese leadership appeared to have crossed the Red Line. Otherwise, Washington, which has been assiduously courting Beijing ever since Henry Kissinger crossed into Zijin Cheng – the Forbidden City from the land of the pure, would not have decided to put its act together howsoever clumsily.
The message, as the New York Times puts, is that China’s new assertive power has little chance of working with the US. And this was sent out loud and clear from the weekend meeting of world’s largest economies held in South Korea. A united front of America against China? Not necessarily because there are differences amongst the US allies on placing numerical limits on trade imbalance with China.
Russia, Italy and Germany have all run up huge trade deficits but it is not comparable to the colossal scale of America. Also, their geopolitical and economic interests vis-à-vis China are not fully in sync with the America’s.
But the fact that the very topic of numerical limits has been placed on the agenda must make Beijing see a Tsunami warning because it signals the first step in isolating the emerging Asian super economic power.
Root of the problem, whether it is Yuan issue or territorial claims in the South China, is a loss of trust and confidence- the two most essential ingredients for good business. Like China, US, Japan and other allies in the free world are guided and goaded by domestic concerns. Where they differ is, unlike, Communist China, these countries have to worry about the X-factor at the ballot box.
For instance, in the run-upto the US Congressional elections, candidates in at least 30 races are demonizing China as a threat to American jobs. Put differently, politics of market is a two-way street. Triumphalism has no place in globalised village.
By lining up 12 countries behind the American position on South China Sea imbroglio, the Obama administration has made its point.
Significantly, this is also the message from Delhi to Beijing. It has no intention of bringing ties back up to the same level as existed prior to the denial of a visa to Jammu and Kashmir-based Lt. Gen. B.S. Jaswal, and hence the India ‘pause” on all military and defence talks.
