A Pawn in the Sino-US Trade War

 In North America, we have witnessed, in the last few years, corporations denying the President of the United States the right of free speech. We’ve seen the media become an exploitive force in politics and anything that affects our personal freedoms. We have seen international relations become based on trade policies versus a way to create international harmony, and we have seen people become pawns in this trade war scenario.

Canada, in 2019, became an unwilling participant in both an escalating trade war and an international incident. I’m talking about the capture of Ms. Meng (the CFO of Huawei) by Canadian border personnel guided and supported by the FBI and Homeland Security (HS) present at the Vancouver International Airport.

On the surface it may seem odd that the FBI and HS would be on Canadian soil. It might seem odd that we would be asked to hold a Chinese citizen so she could be extradited to the USA, and it might seem odd that a sitting US President would refer to Ms. Meng as a “bargaining chip”.

Fear of Chinese Dominance

An outsider can very easily see the issues. The US, fearful of a Chinese advancement in technology including 5G produced by global giant Huawei, protected their perceived dominance in technology by attacking the CFO of Huawei on behalf of US tech giants in an effort to stop the incursion of Huawei’s 5G into the US. The pressure was so explicit that Canada, England and others, fearing US retaliation also stopped sales of Huawei's 5G. 

This see-saw battle for global dominance is not new. In the three centuries before 1800, China dominated the global monetary system with silver backed currency. Great Britain dominated trade with the East India Company and their navy in the 17th and 18th centuries. 

In general, the swift rise of technological change has driven the fear of global dominance that has lead to many countries trying to outdo one another in the quest to be first to market with innovative technologies. The idea of a trade war is in fact a need for one country to be a champion or leader over the other. Sometimes the rush to dominance becomes messy.

There’s more to this than an international trade war. This unprecedented political intervention by the USA has undermined the integrity of the Canadian judicial system. 

To be fair, many countries have extradition agreements with the US but never has a sitting President remarked on his willingness to intervene in a case before the courts. Never has it been so obvious to everyone that the US, fearful of losing a key technology battle, would resort to trying to ‘take out the competition’ by having its’ CFO arrested in a foreign country. Much to the embarrassment of many Canadians, our government allowed the US to walk all over us, produce weak claims against Meng and allow US authorities to subvert her rights in our country. 

Huawei's CFO as a Pawn by USA

The US is obligated to act in good faith during extradition cases, yet the use of Meng as a pawn, reduced to an economic asset, flaunts Canadian and international law. Her case has been before the Canadian courts for more than two years while she remains under house arrest in Vancouver. 

This is a simple case, whether or not to extradite a Chinese citizen to the US. The resulting political interference is a threat to other countries – seek to interrupt our technological dominance and you will be targeted. With the interference in our Canadian laws by former President Trump, the media and Canada’s own federal government preclude Ms. Meng from finding any impartiality in a Vancouver courtroom. 

I, like others, expected when President Biden took office this kangaroo courtroom drama would go away but the US has continued its assault on their competitor, Huawei. In fact, in March, a US spokesperson claimed that “technology was at the core of this Sino-US debacle.” (Bloomberg, March 1, 2021)

To Get a “better trade deal with China”

Ten days after Meng’s arrest, then President Trump, said in an interview with Reuters, that he would intervene in the case to get a “better trade deal with China”. Huawei CFO’s lawyers expressed to the court that Trump’s interference should have been enough to cancel the extradition hearings. His intervention cannot give Meng an impartial hearing by an impartial judge- the US admits there’s too much at stake!

This case takes international relations to a different level. Trade wars are common, political interference is also common behind the scenes and countries seeking a nationalistic policy may protect its citizens and its corporations from interlopers. I’m just, not, in any way, comfortable with foreign agents telling my country what to do to protect our interests. 

We have had a comfortable economic and cordial relationship with China. The Meng case has turned that relationship on its head. It’s affected our mutual trade, changed the way we look at Chinese Canadians and marred foreign relations.

China's fight is not with Canada, it's with the US and its foreign policies. The relationship between Canada and China is salvageable with cooperative signs from the US of a 'statesman's approach' versus an opponent focus.

Will Biden's Presidency Change the Narrative? 

When Biden was elected in January 2021 most pundits expected a significant change in foreign policy and a loosening of not only the tariffs but attitudes as well. White House Press Secretary Psaki said, the US “ views our relationship with China as one of strong competition”. Senior Chinese diplomat, Foreign Minister Wang Yi, told Reuters, March 18, that “China stands ready to have candid communication with the US to engage in dialog aimed at solving problems.” Both comments, obviously, dutiful rhetoric designed to make both sides look willing to connect.

The US continues to use Chinese internal issues to deflect from what is simply a fight for technological dominance. While US diplomat Antony Blinken, on March 18, at a bilateral meeting in Alaska, said,”Beijing and Washington need to ramp up communication, properly manage their differences, and expand cooperation instead of engaging in confrontation.” China has internal issues no different than the US.

Even though technology seems to be at the forefront, the case of Meng Wanzhou continues to place a wedge between meaningful communication between Beijing and Washington. While Canada, releasing Meng would be seen as a surrender to Beijing’s pressure, President Biden could have legitimate reasons to withdraw the U.S. extradition request.

The promise from Biden's Presidential campaign was for the US to “Build Back Better.” Biden can try domestically but that to happen internationally, particularly with respect to Sino-US politics, he'll need to cajole many western powers to join him against China. He will need to try to force them into change or, he can go another direction.

Biden can be the peacemaker, a statesman, and approach China alone. Unless Biden puts a friendly face to US trade/economic policy there could be a decoupling of the supply chain and both economies. They need each other!

Huawei is simply a case to bring attention to the problems. Products, services and even corporations, should be able stand alone in the marketplace based on quality, price and availability rather than making wholesale industries pawns in foreign trade and hegemony.

Another Cold War?

If you can remember the Cuban Missile Crisis in 1962, the escalation of problems almost resulted in a nuclear war until cooler heads prevailed. Obviously, the current situation between China and America has few ominous similarities; but no one wants another 'cold war'. 

De-escalation can start with a more open trade policy. It can be simply allowing foreign corporations to bid for markets to offer competitive services and products, and it can certainly deescalate by allowing the case of Huawei's CFO, that became a flashpoint, to quickly end favorably to both sides, in the courts. 

As much as Biden would be hesitant to do so, should the US rise above the role of being the world's peacekeeper and focused on his own country's turmoil as Trump focused on his nationalistic approach, nation-states like China might be more inclined to work collaboratively rather than as an adversary. 

If Canada could focus on delivering judicial action based on facts, within a reasonable time, and without external pressures we would have the judicial system we deserve, not actions foisted upon us by foreign powers. 

The bilateral relationship between the US and China needs trust. Trust is earned! When people try to resolve conflict it can be done by seeing the view from both sides. These world leaders in tech and economics need to place themselves in the footsteps of the other to realize how collaboration can succeed.

The Meng case should have been concluded many months ago. It has cost millions of dollars, upended a woman’s life and put the reputation of Canada and it’s courts in jeopardy. There are only two options, in my view, for Canada to drop the proceedings due to political interference, or the US to drop the extradition as a sign of good faith.

When is enough, enough? Let cooler heads prevail!

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