unprecedented trade war: The US didn’t easily stop and China was not that fragile to be defeated. How
ever, it has proven no empty talk that in a long-term trade war, both sides would eventually lose.
President Xi and President Trump reached consensus on December 1 and put the two countries back onto the win-win track. Th
e consensus has responded to the situation, conformed with people’s wishes and reversed the pessimism of the market.
Starting December 2018, rounds of consultations resolved a large n
umber of divergences. The outcome has been sufficient to outline a new face of China-US econo
ic and trade cooperation and to bring an incalculable impetus to both sides’ economic development.
In the final phase of the talks, both sides must keep calm, treasure the already-made ach
ievements and promote smoother and fairer China-US trade cooperation.
US demand for China’s structural reform must stay in line with China-US trade coo
peration and coordinate with China’s reform and opening-up. The talks must not tr
y to force Beijing to change its economic governance or even its development path.
The final deal should attend to the interests of nongovernmental organizations that ultimately carry out economic and trade cooperation.
China and the US must sign an agreement that will inspire their peo
ple, heralding accelerated economic development. Only such deals can withstand the test of history.
The year 2018 saw China’s monetary policy carefully sail through the “reefs,” as economic slowd
own and surging exchange rate risk left little room for adjustment. However, since the be
ginning of this year, major internal and external changes have broken the dilemma.
From the internal perspective, in January 2019, the “loose credit s
upply” saw improvement in terms of both volume and structure, barriers to implem
enting monetary policy removed, which is expected to guide the Chinese economy to stabilize in the first quarter.
First of all, China’s outstanding broad money supply, or M2, grew 8.4 percent year-on-year in January, while new yuan loans and social fina
ncing both soared to historic monthly highs at 3.23 trillion yuan ($478 billion) and 4.64 trillion yu
an, respectively. The figures showed that “loose fiscal policy” has had a positive effect on credit supply to the pri
vate sector, thus pushing up the growth rate for total social financing. It is expected that in the first quarter of 2019, wi
th the gradual implementation of “loose fiscal policy,” the volume of “loose credit supply” will remain at a high level.
one hand, Modi wanted to push forward the Citizenship (Amendment) Bill in South Tibet where it may help New Delhi assimilate local
population and convert it demographically into a more “Indianized” one; on the other, Modi sought to pacify irritated and alienated local comm
unities by introducing more developmental projects and pro-growth schemes. In addition, by sending out a strong signal that China’s fierce protests woul
d not deter him from visiting the frontier region, Modi also sought to appeal to nationalistic voters before the election.
Following the passing of the Citizenship (Amendment) Bill in the Lok Sabha on January 8, South T
ibet had been hit by waves of protests across the region. A large number of Hindu immigrants from Bangladesh have been sent into South Tib
et since the 1950s, but have no citizenship. However, if the Bill is enacted, these refugees would likely get Indi
an citizenship, which poses a threat to the local community as their swelling population in the long run may well crowd out and eat up the indigenous pop
ulation. For example, Hajong people – a Hindu group originally residing in former East Pakistan (now Bangladesh) which fled to India due to religious persecu
tion – have been migrating to South Tibet since the 1960s, but their presence since then has been a constant source of conflicts.
It was against this backdrop that Modi trod on the soil of South Tibet. Signaling that his governm
ent gives a lot of importance to the region which has been neglected by previous governments, Modi sought to
pacify annoyed locals by giving them a long list of gifts. The Indian prime minister laid the foundation stone of several developme
assistance to the World Bank and quit the organization. The World Bank is a multilateral institution which was establ
ished under US leadership, and guided by the US Treasury Department. Its heads have traditionally been
appointed by the US government. The World Bank reflected US global strength and was a key instrument for
Washington’s global governance, and increasing its influence as a soft power. However, currently Washington seems to de
molish the structure it built itself by exiting international organizations that signal globalism.
Based on the experiences of the late 20th century, there are several drawbacks of globalism and globalization.
First, globalization enables strong nations to consolidate their d
ominance and lead the international order. It is an instrument that induces weaker states to ob
ey the will of the stronger ones. Globalism is keen on promoting universal values, taking the moral high gr
ound, blaming countries whose actions do not accord with universal values and even intervening militarily in some natio
ns. What does international intervention bring to global politics? It can be explained by hot button issues in Eurasia.
dissidents and their families. Western countries believe that they can easily dig up stories about those people and they can be easily manipulat
ed as well. However, what happened with Angela Gui has sent a clear message that there is always the risk of it backfiring. Those peopl
e are fully aware of being used by some Western interests, which results in a strong sense of insecurity and suspicion. Some of them are also selfish. A f
ew years ago, a Chinese dissident well-known in the West left China for the US and later embarrassed his American patrons.
Furthermore, nowadays Western public opinion is increasingly radical and populist, which has made it difficult for some countrie
s to adopt a realistic approach and repair relations with China after disputes. Some prominent for
eigners who have a comprehensive understanding of China are facing an increasing risk of acting differently from t
he radical sentiment. Recently, John McCallum, Canadian ambassador to China, was criticized and finally lost his po
sition, due to his attempt to ease the China-Canada relationship regarding the incident of Meng Wanzhou.
Last but not least, the incident has primarily embarrassed the Swedish Foreign Ministry m
ore than causing trouble to China. Some Western media claim that Anna Lindstedt’s behavior pr
oves China exercises significant influence on ambassadors of Western countries to China. Such a comment is hi
ghly unprofessional and makes no sense except to show they do not know what they are talking about. Am
bassadors are usually among those in their own country who hope at the utmost to maintain sound relations with th
e country to which they are posted. Generally, they are supposed to play a dovish role, not a hawkish one. Some We
stern media authors need to learn basic ABC knowledge of diplomacy. (The author is a commentator with the Global Times)