On a Trade War with America: " China is Not Afraid "
“The Chinese have never stirred up trouble, but also have never been afraid of things. This time is no exception”. So begins a confident, tough and eloquent Xinhua News Agency Commentary on the prospect of a trade war with the U.S. In reaching back to a famous phrase in the Book of Rites, an early Confucian text (往而不来，非礼也；来而不往，亦非礼也), this remarkably assured commentary stands as a simple yet stark rebuke to the shambling and bombastic rollout of misguided protectionism by the U.S.
By “obstinately” planning to impose tariffs on Chinese imports as well as restricting Chinese companies’ investment in the U.S., America is “provoking” a trade war with China, says the Xinhua commentary. It goes on to remark that the “principal creator” of international trade rules, now has become its “destroyer” by taking “reckless” and “shortsighted” acts of protectionism, which not only will harm Chinese interests, but “in the end” will also harm America’s own interests and more importantly will harm international trade by creating unpredictable effects on the cost, circulation and pricing of products throughout the world. However, if the U.S. “insists” on starting a trade war, the commentary simply yet firmly states, China “absolutely” will not “sit back” and have its “lawful interests” damaged. China’s position is “consistent and clear”: “We do not hope for a trade war, but absolutely are unafraid of any such challenge”.
The high-minded and resolute tone of the Xinhua News Agency Commentary is underscored by the paraphrasing of this well-known saying from the Book of Rites, an early Confucian text: 往而不来，非礼也；来而不往，亦非礼也.
The Xinhua Commentary reminds us that with a market of 1.3 billion, China’s large and dynamic economy is prepared to weather any international storms; no country should underestimate China’s resiliency, and its ability to not only withstand any blows but also to respond in kind. The $3 billion in tariffs imposed by China on U.S. products in response to the actions of the U.S. is “just a warning”, but also is a clear signal that China “is not afraid and will not hide”. If necessary, China “certainly” will impose further countermeasures. The U.S. “should not misjudge the situation” nor “underestimate the Chinese people’s resolve and ability to defend its lawful interests”.
This remarkable Xinhua commentary concludes by hoping that the United States steps away from the “precipice” and makes a “prudent decision” to not drag bi-lateral economic relations and the world’s economy into a “danger zone”.
A lawyer and China specialist fluent in Mandarin Chinese, Lou Schwartz is president of China Strategies LLC. Through China Strategies, Lou provides for-profit, not-for-profit, and government clients research and analysis, due diligence, merger and acquisition, public and private equity investment and other support on a wide range of matters involving China’s legal system, economic development and trade and investment, with a particular emphasis on China’s energy and aluminum sectors. In 2009, Lou was asked to serve on the Strategic Advisory Board of ACORE's China Programs. For more than 10 years Lou taught classes at the University of Pittsburgh and Carnegie Mellon University, including Technology and Development in India and China and Chinese Legal Documents. Lou has lectured widely and been published extensively on China’s emerging renewable energy sector.