War of Wagers


The United States and China have long had a contentious relationship. This relationship dates back to the rise of Communism within China under Mao Zedong and into the cold war. Throughout the cold war flash points such as the Korean War and Nixon’s historic visit to China have represented varying relationship temperature levels between the two powers. While China struggled economically throughout much of the 20th century, the relatively recent opening up of the Chinese economy has made the nation the fastest growing economy in the world. China’s rapid expansion greatly effected the relationship it had with the United States. As China became a major trade partner of the United States for imports and exports a like, trade practices of China began to raise eyebrows. China has long been accused of intellectual property theft against American companies and the American government. Everything from trade secrets, patents, information about secret military programs, and other important information has been stolen by the Chinese as a result of factories and other business practices being handled within China. The total loss of U.S. companies and the government is estimated to be $300 billion dollars worth of profit annually. Additionally, many including U.S President Trump have also made the case that China has been unfair in its dealings with the United States and that this has resulted in an unfair trade deficit. The current deficit between the U.S and China in trade is $375 billion in favor of China. Thus, the claims of unequal trade practices may be warranted.

Source: National Geographic

All of these accusations and tensions have resulted in what is now being called a “Trade War” between China and Trump.  This all began with the U.S. governments directive to investigate Chinese trade practices in 2017 and then the first set of tariffs hitting on solar panels and washing machines in 2018.  Since then the trade conflict has ballooned as stakes have gotten higher and tariffs have sky rocketed. Currently the United States has slammed China with nearly $300 Billion in tariffs on a wide range of products. China has responded with a slightly lower amount of tariffs in the range of $200 billion. While the effects of this trade war are only starting to be felt, the issue of the economic and international relation fallout has become a hotly debated issue in the United States.

Typically proponents of the trade war believe that it is advantageous because the U.S. can force China into better trade for the U.S. and win the war. This would be done by slowly crippling the Chinese economy by making it more and more expensive to send goods to the United States. This idea is called a tariff and forces foreign governments to pay to import certain things. This practice turns into a war when the nation slammed with tariffs places tariffs back against the other nation. Essentially, the war boils down to which economy can withstand the profit hit more. Opponents of the trade war very strongly believe that the hit to local businesses including agriculture would be too high of a price to pay in the long run for any gains in trade agreements. Different still, many believe that this trade war is a draw or worse a lose, lose situation for each country. While in the 1960’s the global economy accounted for less than 30% of the American economy, today it represents close to 60% of the total American economy. Thus, many argue that continue the continued trade war would not only hurt China and the United States, but potentially the worlds economy as a whole.

 

Despite opinions, current indicators show that China is, in fact hurting more than the United States is as a result of the trade war. Although recent stock market slides and a downturn in Agriculture exports has sparked concern, the desired effect on crippling China is occurring. While the U.S. stock market is down 3% the Chinese stock market for the year was down over 20%. The current trade standings go to show the truth to the statement:  “if we cannot trade with China, we sneeze. If China cannot trade with us, they catch pneumonia.”  While the risks are still incredibly high for both countries, Trump is not backing down any time soon it appears. So far, Trump has gone through on all threats to China and seemingly has leverage in the trade battle at the moment. While many will be hurt by these actions and opinions will continue to be very divided, the trade war appears to be primed to continue until one nation blinks in front of the other.  For Trump this means public opinion of the trade war will be crucial. Currently 34% of Americans are concerned about the continued trade policy between Trump and China. If this number continues to rise and debate continues to intensify the war may be over sooner rather than later.

Uncharted Waters: South China Sea

 

 

Source: IBtimes

Countries around the world have always sought to increase influence, power, wealth, and dominance in their corners of the world or even on the global stage. This fact of international political behavior is nothing more than an extension of the most human of survival instincts. No differently than human conflicts, the act of striving for power by a nation is bound to spur both political and violent conflicts. In the South China Sea this behavior is on display in a complex dispute between many Southeast Asian nations and now the United States of America.

The area of the South China Sea has long been a contested area of the Pacific Ocean due to its strategic importance as a key international shipping route. Trade from Asia, Europe, and the Americas all often ventures in and out of these straits of water and as such the freedom of navigation is an important aspect for many nations’ economies. The South China Sea is also very contested because many of the nations in the region have disputes over land claims of the many islands in this area of the Ocean. Control over these islands effectively increases the influence and borders of a nation as nations can lay claim to a 12 nautical mile radius of water around an island. Nations such as Malaysia, Vietnam, Brunei, Philippines, and China all have claims in this region. Thus, the region already is very divided by its strategic importance as well as nations vying for influence over areas through territorial acquisition within the South China Sea.

In an attempt to artificially gain influence and territory as well as impose will on the region, China has recently been turning coral reefs into islands where it houses ports, military facilities, military airbases, and many other undisclosed facilities. While this has inflamed local issues further, the actions of China have also brought the United States into the picture. The United States Navy and all shipping lanes have been operating closely to these new islands as they were previously international waters. While this action has angered China, the United States argues it has the right to travel in those waters as they are technically still international. On the other side, China argues these waters are apart of their 12 nautical mile territory surrounding the island.

Chinese Dredgers seen creating an artificial island.                  Source: New York Times

 

The United States’ continued “freedom of navigation” operations have prompted harsh responses from the Chinese government that have made explicit threats against the United States.  Foreign Ministry Spokespeople have said; “The US action violated the Chinese laws and international laws, infringed China’s sovereignty, damaged regional peace, security, and order. China will take necessary actions to protect state sovereignty.”  Additionally, the Chinese government has made even further claims of war saying; “If a US warship illegally enters into Chinese territorial waters again, two Chinese warships should be sent, one to stop it and the other to bump against and sink it.” Thus, the actions of both nations could be seen as dangerous steps towards a regional war or something much larger.

Source: Defense News

This conflict has created argument over what the proper course of action is for the United States in this situation. Is the region our place to be poking at? Many would answer this question by saying that defending the sovereignty of the South East Asian states while aslo upholding international waters is a noble cause. Still, others warn that this is, but another inflammatory and necessary move by the United States to prove its power and or increase its influence in a strategic region of the world. Vietnam has routinely prompted both nations to settle disputes through peaceful dialogue, however, even this nations stance on the issue is intensifying with China’s heavier and more threatening stances. Thus, it seems ever more likely that some sort of confrontation could take place between the United States and China. Whether this conflict arises due to direct engagement between warships or aircraft, or the conflict arises from one between allies of the United States and China, the risks are high in the region.

This issue, however, has not yet become a hot button issue within the United States as domestic policy has been the focal point of the United States since the election of Donald Trump. Although conflict within the United States is at a minimum currently, continued escalation of the the South Eastern Chinese Sea conflict could bring this conflict into Congress and the homes of the American people.

Overall, the continued pressing of China within the South East China Sea has prompted response from neighboring nations as well as the United States. Tensions have been rapidly rising since 2015 when the creation of artificial islands began. Debate over the United States’ involvement in the region will be contentious as this issue continues to arise in the future.