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Donald Trump’s Asia tour: North Korea top on agenda

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As the longest tour of Asia by a US president in 25 years, US President Donald Trump has embarked on a 12-day trip to Asia starting on Friday the 3rd November during which he would five countries: Japan, South Korea, China, Vietnam and the Philippines. In his shuttle diplomatic voyage, President Trump is expected to show a united front with South Korea and Japan while pressing China to take a stronger line with Pyongyang.

Donald Trump has kicked off his 12-day tour of the Asia-Pacific region in Japan. Trump will then visit South Korea and China before traveling south to Vietnam and the Philippines.

Ahead of a trip to Asia starting from Japan, Trump urged Saudi Arabia to choose Wall Street as a venue for the initial public offerings (IPO) of shares of oil giant Aramco in 2018. He tweeted from Hawaii, “Would very much appreciate Saudi Arabia doing their IPO of Aramco with the New York Stock Exchange. Important to the United States!” The Aramco IPO is expected to be the largest in history, raising around $100 billion in much-needed revenue for the Saudi kingdom. Saudi Arabia has posted $200 billion in deficits in the past three fiscal years due to the slump in global oil prices. Aramco, which controls Saudi Arabia’s massive energy assets, plans to list nearly 5 per cent of its shares in the stock market. Plans are to list the offering in the second half of 2018 on the Saudi stock market as well as an international exchange, with markets in New York and London vying for the offering.

The trip comes at a time of heightened tensions with North Korea over its nuclear program and missile tests. Trump flew first to the US state of Hawaii where he visited the USS Arizona Memorial at Pearl Harbor – the scene of the 1941 Japanese attack that drew the USA into World War Two. He also took part in a briefing at the US Pacific Command.

Itinerary

On 5 November: Arrives in Japan. Plays Golf with Prime Minister Shinzo Abe and professional player Hideki Matsuyama at Kasumigaseki Country Club; Bilateral meetings with Abe; 7 November: In South Korea for talks with President Moon Jae-in. Trump will also address the National Assembly; 8 November: Arrives in China for a series of events including meetings with President Xi Jinping; 10 November: Travels to Da Nang, Vietnam, and will participate in the Asia-Pacific Economic Co-operation (APEC) summit; 11 November: Travels to Hanoi, Vietnam, for talks with President Tran Dai Quang and other Vietnamese leaders; 12 November: Arrives in Manila, Philippines, to take part in a gala dinner for the 50th anniversary of the Association of Southeast Asian Nations (Asean); 13 November: Will attend the Asean summit in Manila and hold talks with President Rodrigo Duterte; 14 November: Trump will stay for the East Asia Summit, a wider regional gathering that includes the US, India and Russia.

Japan – first stop for Trump’s Asia-Pacific tour. The first two stopovers are Washington’s key allies in Northeast Asia: Japan and South Korea. They have both been rattled by a wildcard president who threatened to upend a global order the US had underpinned for decades. In Vietnam, Trump will attend the Asia-Pacific Economic Co-operation summit in Da Nang, apparently the key item of his tour, and make a state visit to Hanoi. His final engagement was scheduled to be a summit of South East Asian nations in the Philippine capital, Manila, on 13 November but the trip has now been extended by an extra day so he can attend the East Asia Summit. The last time a US president made such a marathon trip to Asia was when George HW Bush visited the region in late 1991 and early 1992.

Before Air Force One takes off for a Hawaii visit on Friday, the key challenges facing Trump on an odyssey that started in Japan on Sunday before stops in South Korea, China, Vietnam and the Philippines. From Hawaii, he and First Lady Melania Trump headed to Japan and then on move to South Korea.

Donald Trump’s tour of Asia offers plenty to keep the US president cheerful, from lavish state banquets to honour-guard pomp and even a chummy round of golf with Japanese Prime Minister Shinzo Abe. Upon arrival in Japan, Trump resumed his characteristic aggressive rhetoric targeting his “foes” like North Korea, Iran and Pakistan warning them of destruction saying that they are on a suicide mission.

Target North Korea

Trump has previously exchanged some fiery rhetoric with North Korea over its ballistic missile tests but aides said earlier last week that he would not go to the heavily fortified demilitarized zone (DMZ) on the border between the South and North. He is, however, to visit Camp Humphreys, a US military complex south of the capital, Seoul. Trump’s visit to China was incorporated into his itinerary to make Beijing get North Korea on board.

The way the Trump government tells it, the totalitarian regime in Pyongyang is rapidly developing nuclear warheads and the intercontinental ballistic missiles to carry them to a US West Coast city such as Seattle or Los Angeles.

The White House counter-strategy seems to be assuring allies such as South Korea and Japan that the USA still has their back, while getting North Korea’s main ally, China, to economically pressure Pyongyang back to the bargaining table.

That’s a recipe for trouble at Trump-Xi talks from November 8 onwards. Many Trump’s officials believe that Beijing has to help solve the North Korea problem. Not be helpful, but solve the problem. And there’s no easy solution to this, certainly not one that China will find acceptable and low cost.

Chinese President Xi Jinping’s calculus is different. Beijing-Pyongyang relations have troughed, but a collapse of the hermit nation could send refugees spilling northwards and land American troops on China’s doorstep.

That’s where the fun stops. These are big tests for a commander-in-chief who does, on occasion, follow the teleprompter and stay “on message”, but at other times becomes frustrated and fires off salvos of brusque, early morning Twitter missives.  It also represents a grueling 12-day slog of speech-making, summits, and tricky sit-downs on a range of trade disputes – and the intractable policy headache of North Korea’s nuclear arms program.

While Trump has skimped North Korea in his maiden trip to the region of Asia Pacific, the trip is indeed focused on that country as he wants to deny nuclearization of that nation. He wants to make a united front among the regional powers including China against North Korea.

Trump has spoken of raining “fire and fury” on North Korea – rhetoric that nudges the region towards a potentially calamitous conflict. He may well tone that down a notch when addressing the National Assembly in Seoul on November 8. He may also be wise to offer some goodies. The US pull-out from TPP came as China was rolling out its multibillion-dollar “Belt and Road” infrastructure development plan across Asia and beyond.  According to Ford, the expected Asia policy must provide a new “economic vision, post-TPP”. Simply renegotiating a bilateral trade with South Korea, and vaunting new ones with Japan and Vietnam, is not enough.

Challenge of Asia-Pacific policy: Asia last?

Fake news, fictitious threat perception concerning their security by the government makes both USA and Israel strong militarily. USA and Israel always fix their imagined foes trying to target and destroy them, though it remains a fact both cannot be destroyed because of their anti-missile shield and WMD.

Thus any country seeking nuclear energy and WMD to defend their nations and populations from possible enemy attacks is viewed as being the cause of destructive trouble for the super power of USA and Israel.  Of course that is only a known gimmick to threaten and bully the weak nations seeking WMD.

Thus Iran and North Korea are seen as their enemies because USA says they are developing nukes to destroy only USA and Israel. 

Former US President Barack Obama tried to “rebalance” the US’ defence and economic policy to counter China’s rise, including with a 12-nation Trans-Pacific Partnership (TPP) trade deal that excluded Beijing.

Trump scrapped TTP almost as soon as he entered the White House in January. Amy Searight, a former Pentagon official, told Al Jazeera the “lack of any replacement with a proactive trade policy or economic agenda” has left Washington’s Asian partners feeling anxious.

Trump the property magnate is expected to unveil a new framework at the Asia Pacific Economic Cooperation (APEC) summit in Da Nang, Vietnam, on November 10. White House officials talk up plans for a “free and open Indo-Pacific region.

Although big questions about the policy remain, a recommitment to rules-based economic fairness may be a solid message, Lindsey Ford, a former Department of Defense official, told Al Jazeera.  “It’s important for people to hear that America First does not mean Asia last; that American prosperity can go hand in hand with Asian prosperity,” said Ford, an analyst at the Asia Society Policy Institute, a think-tank.

Trump’s biggest challenge could be the one thing he cannot seem to change: himself.  He is prone to undiplomatic language that plays badly with buttoned-down Asian officials. Previously on Twitter, he accused South Korea of trying to “appease” its northern neighbour, and criticised Xi for not doing enough to rein in Pyongyang.

The trip is longer and tougher than his first foreign venture to the Middle East in May. He may get irked by Japanese resentment over a US military base in Okinawa, or rallies against the “war maniac” US president on the streets of South Korea. “Among government officials, there are going to be a lot of white-knuckles and held breath throughout the two days of his time in South Korea,” Scott Snyder, a scholar at the Council on Foreign Relations, a think-tank, told Al Jazeera.

There is a risk of clashing egos when Trump meets Rodrigo Duterte, the hard-boiled president of the Philippines, on November 13. Meanwhile, Russian President Vladimir Putin will attend APEC, shifting the spotlight back on to the troublesome probe of election collusion. China is a safer bet.

US-China relations

Officially a communist nation pursuing Socialist policies indoors and a mixed agenda abroad, China has developed trade relations with US superpower along with it also shares the veto power on UNSC. USA has been employing many countries in Asia including those he is visiting now and India to contain the Chinese influence on the continent and beyond.

Neocons believes only economic ties could USA closer to Beijing. Trump’s stop in Beijing is being billed as a “state visit plus” to mark the importance of the dynamic between himself and President Xi, as well as relations between the US superpower and China’s fast-growing economy and armed forces.

In Beijing, the two leaders representing West and East respectively may be able to paper over the cracks by unveiling a few energy deals this month, but that would only be a “calm before the storm” and the “escalation of tensions” next year. The Trump government has high expectations from China, a fundamental reordering of the trade relationship, while China expects a relatively painless negotiation process.

Meanwhile, the two leaders are in different positions. Xi has just emerged from a glowing five-yearly Communist Party congress; Trump has low approval ratings of 34 percent and is battling a probe about election collusion with Russia. He faces condemnations form both Democratic and Republican pastries. Former CIA analyst Christopher Johnson compared Xi’s “strong position with no visible domestic opposition” to Trump’s routinely questioned style and legislative record. “This gives Xi a bit of a leg up” when bartering.

North Korea is not the only glitch. Trump rails against the United States’ “embarrassing” $347bn trade deficit with China, and has accused Beijing of manipulating its currency, rigging markets, and pilfering ideas from US firms.

WMD as deterrent

The US President Donald Trump’s two-week visit to the Asia-Pacific region as  the threat of a military confrontation with North Korea will be high on the agenda in Japan, South Korea, and China.

North Korea is developing its nuclear weapons to defend itself against any future US aggression so it doesn’t endure “the tragic situation of the war-torn non-nuclear countries which became the targets of invasion and plunder by the USA.

North Korea needs nuclear weapons as a deterrent to prevent “invasion and plunder” by the unilateral USA. It is indeed scared of US militarism and condemned the USA and its allies’ “crazy escalation of sanctions, pressure, and military threats” against the communist country that “will get them nowhere”.

The nuclear force of the DPRK has become a strong deterrent for firmly protecting peace and security of the Korean Peninsula and the rest of Northeast Asia and creditably guaranteeing the sovereignty and the rights to existence and development of the Korean nation, using the acronym for the country’s official name, Democratic People’s Republic of Korea. 

The Uriminzokkiri commentary denounced the military build-up near North Korea. “It is ridiculous for the US to try to browbeat the DPRK through such muscle-flexing as deploying nuclear aircraft carriers and submarines near the Korean Peninsula and its vicinity and flying nuclear-capable strategic bombers on it,” it said.

The USA has said it will never accept a nuclear-armed North Korea and Trump has threatened to “totally destroy” the country. In response, Kim Jong-un’s leadership said it may conduct an atmospheric nuclear weapons test. North Korea dared USA to make the first military move.

In advance of Trump’s visit, three American aircraft carrier strike groups have been deployed to the region, a move military analysts have described as unusual. Stratfor, a US-based intelligence analysis company, noted in a report that the US Air Force also will send a dozen F-35A stealth fighter jets to a base in Japan in early November.

The gathering is a rare occurrence – the last time three US aircraft carrier strike groups convened for a combined exercise was in 2007 – and will give the United States a powerful force within striking distance of North Korea,” Stratfor said.”Taken together, these developments suggest that the United States is preparing for a confrontation. But that doesn’t necessarily mean that Washington is gearing up to start a war with Pyongyang,” a report concluded.

Michael T Clare, a professor of peace and world-security studies at Hampshire College in the US, wrote: “There can be only two plausible explanations for this extraordinary naval buildup: to provide Trump with the sort of military extravaganza he seems to enjoy; and/or to prepare for a pre-emptive military strike on North Korea.”

Tensions remain sky high after North Korea’s sixth and most powerful underground nuclear test in September, and a flurry of ballistic missile tests in recent months.

Will there be a war on the Korean Peninsula?

Absolutely there is no chance for a direct US war with North Korea, a close ally of China and Russia – another veto member.  Russia and China would reject any US proposal in UN for a war with NK. USA would not dare attack North Korea on its own or under the NATO banner since Russia and China might as well enter the war, making it a beginning of an official WW-III.

There could be possible triggers for war with North Korea that need to be carefully watched. The first possible trigger is a declaration of war by North Korea, especially since the USA has made clear it has not declared war. This won’t happen because Russia and China would not support it. The idea that countries would formally declare war against each other, before commencing hostilities, is a relic of the early 20th century. Although remnants of the practice remain, it was largely outdated by the Second World War as the military advantages of surprise as the Japanese attack on Pearl Harbour and the Nazi attack on Soviet Russia, made clear.

The second possible trigger is the North Korea threat of a possible detonation of a nuclear device in the atmosphere over the Pacific. Although the aesthetics of such an act would shock the world as humanity has not seen a nuclear airburst since that done by China in 1980, this would not be the beginning of hostilities. However, if Kim explodes it in international territory, such as the high seas, he faces different rules, such as when Australia and New Zealand took France to the International Court of Justice after French atmospheric testing caused radiation pollution to fall on them, downwind. It was for this reason of pollution that most of the global community concluded an international agreement prohibiting such atmospheric nuclear testing. The third possible trigger is the North Korea threat to shoot down aircraft in international airspace as in, mirroring the territorial sea, 12 nautical miles/22.2km out from the land. Previously in 1969, North Korea did shoot down an American spy plane, killing all 31 members aboard when it was operating in international airspace. At that point, President Nixon did not respond with violence due to a fear of how the Soviet Union and China would react.

Interestingly, upon arriving Tokyo, Trump has asked Japan to attack North Korea by firing missiles to that nation. Japan is yet to respond to US demand. .

After the Second World War, the UN seeking global peace hoped that all members would refrain from the threat or use of force against the territorial integrity or political independence of any state, to which Declarations of War by individual states would become redundant. However, when the North Korean armed forces advanced over the 38th parallel on June 25, 1950, without a declaration of war, it was shown how in vain this hope was. The response to this act of aggression by North Korea was the 84th resolution of the Security Council (when the Soviet Union was absent from the vote) to defend South Korea under the UN flag but with the leadership of the US.

Today, the situation is even more complicated as the North Korean rhetoric of declaring war is not uncommon. Following the 2013 sanctions approved by the Security Council against North Korea for their nuclear test, Kim Jong-un promised a pre-emptive strike against the USA with its nuclear weapons. This was followed by a “Full War Declaration Statement”. This was all part of their assertions that North Korea had scrapped the armistice that ended the first Korean War in 1953.

To show their determination in 2013, North Korea also cut the hotline that enabled direct communication between North and South Korea. Although the hotline was reconnected a few months later, when South Korea closed down the joint Kaesong industrial complex following Kim Jung-un’s fourth nuclear test in early 2016, North Korea condemned the act as a Declaration of War, and then cut the hotline again.

Cutting the hotline is more dangerous than the rhetoric. Hotlines prevent accidental war. South Korea, which has a hotline to China, has been trying to have its hotline to North Korea reconnected. However, the line that is really needed is one between North Korea and Washington. Such best practice has been evident since 1963, following the Cuban Missile Crisis, when the two superpowers recognised the necessity to be able to talk directly, at short notice, whenever required so as not to stumble into nuclear war.

Today, war planes of both USA and Russia keep flying over very close to  each other’s space. Russian military aircraft have flown over 60 times close to Alaska or down past the edge of Western Europe in the past 10 years have shown, no matter how unpleasant such acts may be, such planes may be intercepted and followed, but they may not be shot down if they do not cross into territorial airspace. To ensure that no mistakes are made in this carefully choreographed sabre rattling, certain rules need to apply – primarily, the planes should not be invisible.

If Kim decides to take down one of the American planes flying in international airspace, as his grandfather Kim Il-sung did in earlier times, he would be gambling against the odds that President Trump will not respond with violence.

However, if USA would declare war on North Korea is a trillion dollar question. Will Trump order the Pentagon to attack North Korea disregarding the worst, devastating consequences?

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China’s Soft Power Diplomacy on North Korean Nuclear Crisis

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For about the last two decades, North Korea’s nuclear weapon development program has become one of the major issues of concern to international community in general and Korean Peninsula in particular. Since the early 1980s, Pyongyang had begun undertaking its weapons of mass destruction (WMD) programs. North Korea also has conducted total five nuclear tests: October 9, 2006; May 25, 2009; February 12, 2013; January 6, 2016; and September 09, 2016. Following its historical progresses, North Korea apparently successfully tested its first intercontinental ballistic missiles (ICBMs) in July 2017.

As far as the global as well as regional security is concerned, the constant development process of North Korea’s nuclear weapons attaches immense attention with huge tensions to world’s global as well as regional powers, the United States, China, Russia, South Korea, and Japan. The involved actors especially the United States has urged for China’s support in dealing with North Korea’s nuclear crisis since the very beginning. Being a significant global as well as regional actor, China’s active role in resolving North Korea’s nuclear crisis through soft power diplomacy draws attention to the wider readers especially from the arena of international relations.

Given these developments, it is pertinent to examine China’s soft power diplomacy in dealing with North Korea’s nuclear crisis. China’s role in the Six-Party Talks on the North Korea nuclear crisis is one of the significant implications of China’s soft power diplomacy in Korean Peninsula. China has been playing a proactive role since 2003 in order to establish peace and stability in Korean Peninsula. The country has facilitated rounds of discussion among the members of the Six-Party Talks in order to dismantle North Korea’s nuclear program with the consent of involved actors, thereby, avoiding any kind of regional instability in Korean Peninsula.

The Shanghai Cooperation Organisation (CSO) is another multilateral forum where China has adopted its soft power diplomacy in resolving North Korean nuclear crisis. For instance, China asserted on dialogue and consultation for the peaceful resolution of North Korean nuclear crisis at the SCO annual summit held on June 11, 2018, in China’s coastal city of Qingdao, which is called Qingdao Declaration.

China’s diplomatic initiatives through its active mediation or mediation diplomacy, one of the significant aspects of China’s soft power diplomacy, in resolving the North Korean nuclear crisis is notable. The U.S.-North Korea talks in March 2003; trilateral dialogues consisting of the U.S. and the Democratic People’s Republic of Korea (DPRK) in April 2003; talks among Six Parties in February 2007; bilateral meeting between the then Chinese Premier Wen  Jiabao and North Korean Chairman of the Workers’ Party, Kim Jong Il in October 2009; and Beijing-Pyongyang dialogue in August 27, 2010 facilitated by China demonstrate China’s soft diplomatic initiatives to dismantle North Korea’s nuclear programs; peacefully resolve the nuclear crisis; and ease tensions in Korean peninsula. In addition, Chinese government officials paid several official visits in Pyongyang in order to make progress in denuclearization process in Korean Peninsula.

Dialogue and negotiation rather than confrontation is a significant strategy of China’s soft power diplomacy in resolving North Korean nuclear crisis. Chinese Foreign Minister, Wang Yi, in this regard, stressed on the peaceful solution of North Korean nuclear standoff through dialogue. Besides, reiterating on the necessity of nuclear-free Korean Peninsula, Wang Yi, also emphasized on the consideration of North Korea’s security concerns and other concerns related to its nuclear programs to avoid any military action or the escalation of tensions in the Korean Peninsula. As per its policy, China strongly opposed to the decision of deploying the Terminal High Altitude Area Defense (THAAD) anti- missile defense system by the U.S. and South Korea in August 2017 and reiterated on dialogue and consultation.

However, now it is important to examine the implications of China’s soft power diplomacy on North Korean nuclear crisis. China’s soft power diplomacy regarding North Korea’s nuclear crisis has significant ramifications on the process towards the peaceful resolution of the crisis. Most significantly, the most recent bilateral meetings between Xi Jinping and Kim Jong-un, Inter-Korean Dialogue, and the U.S.-North Korea Singapore Summit have attracted worldwide attention. For instance, during the historic Inter-Korean Summit on April 27, 2018 in South Korea, Kim Jong-un, Chairman of the Workers’ Party of Korea and the State Affairs Commission of the DPRK, declared to discontinue its nuclear tests. Therefore, the U.S-North Korea Summit, also referred to Singapore Summit, on June 12, 2018 is a noteworthy development towards the denuclearization process of Korean Peninsula. During that summit, Kim Jong-un reaffirmed his position and unwavering commitment to the denuclearization of the Korean Peninsula, while the U.S’ President Donald Trump reiterated on providing security guarantee to the DPRK in return.

Chinese President Xi Jinping’s invitation to Kim Jong-un on June 19, 2018 and talks on the denuclearization of the Korean Peninsula reiterates China’s sincere efforts to continue denuclearization in peninsula. As per the development of their bilateral talks, Xi Jinping met Ri Yong Ho, Foreign Minister of the DPRK on December 07, 2018 in Beijing calling for the development of their stable relations and political settlement on the Korean Peninsula through the progress of Pyongyang-Washington peace talks addressing each other’s legitimate concerns. Kim Jong-un has expressed willingness to continue fruitful discussions with the US President for “complete denuclearization” and “lasting peace” in the Korean Peninsula.

China’s positive role in denuclearizing the Korean Peninsula and improving inter-Korean relations has also been raised by the President of Republic of Korea, Moon Jae-in. He mentioned, “China has played a positive role in denuclearizing the Korean Peninsula and improving inter-Korean relations. Until now, China has played a positive role in helping very much the Korean Peninsula’s denuclearization and the improved inter-Korean relations.”

All these progresses particularly with the China have injected new impetus towards the peaceful resolution of North Korean nuclear crisis. China has been playing very crucial role in resolving the regional as well as global tensions related to North Korea’s nuclear development programs. China’s proactive mediation diplomacy, multilateral as well as bilateral engagements, facilitation to dialogues and meetings for all parties have played crucial role in dealing with the crisis through soft power diplomacy.

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Diplomatic Maneuvers for China-US trade war: December 2018 agreement

Bassem Elmaghraby

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On the sidelines of the G20 summit in Buenos Aires, Argentina on December 1st 2018 the US President Donald Trump and the Chinese President Xi Jinping concluded a conditional trade agreement, according to which Beijing has to reduce its current trade surplus with the US by increasing Chinese purchases of soybeans, natural gas, commercial aircraft and some other US industrial goods. In contrast, Washington will maintain the tariff rate on Chinese exports to US of US$200 billion at 10 percent, instead of increasing it to 25 percent, which was due to come into force on Jan 1st 2019.

Although some commentators, politicians, or scholars over-optimistically described that deal as the end of the trade war, or at least a first step, between the two countries, including President Trump himself; but in fact by analyzing the reasons behind the two countries’ decision to conclude such agreement and whether this agreement paves the way for a final trade agreement or not, and what obstacles may stand in the way of reaching a final trade agreement between the two countries, it seems more likely to be a beneficial truce or a diplomatic solution to gain more time, calming the growing escalation of the trade war and to control its affiliated losses from both sides. Accordingly, the first question that may come in mind is how the future trade relations could be between the two countries?

The coming sections attempt to answer these questions by explaining the reasons behind conducting such agreement for the two sides, the main barriers or obstacles that may prevent reaching a commercial peace between the two countries, and the prospected future of US-China trade relations based on these factors as following:

Why to conclude such agreement?

Based on the rational choice approach, the simple answer of this question is that such agreement is beneficial for both of them; and in fact it is also beneficial for all the international economy, at least to stop the continued losses of both countries.

For the United States

In order to control the losses of the American economy since the beginning of the trade war, where the indicators of the American stock markets declined sharply during October and November 2018; large losses suffered by the American farmers because of China’s imports reduction of agricultural products and soybeans in particular, where 60 percent of its total US production were importing by Beijing; and the costs of the US Department of Agriculture increased for providing almostUS$12 billion as aid to farmers and breeders affected by the trade war.

Seek to improve the trade balance with China, where the Chinese trade surplus have been increased to $293.5 billion from January to November 2018, comparing with $251.3 billion in the same period previous year; combined with increase the Chinese exports to the US by 9.8% annually since November 2018, While imports fell by 25% during the same month.

In addition, to avoid any further economic damages or losses that may occur because of the continued escalation of the trade war between the two countries whether to the American or the international economy, Moreover, to face the internal pressure of his strong opposition, and for the re-election considerations.

The agreement came shortly after the G20 industrialized nations backed an overhaul of the World Trade Organization (WTO), which regulates international trade disputes, giving a symbolic victory for Trump administration, a sharp critic of the organization.

For China

To reduce the negative impact of the trade war, where the Chinese economy suffered from a decline in the economic growth rate during the third quarter of 2018,the defaults in the payment of corporate bond yields, and the decline in property prices; in addition to the devaluation of the Chinese currency since May 2018 by more than 8%, Which is warning to slow the economic growth to 6.3 percent next year compared to the current growth rate of 6.5 percent.

To avoid increasing US tariffs that would undermine China’s economic growth prospects, and increase pressure on its financial markets.

In addition to maintain the stability of the international economy, in order to avoid any negative effects on the Chinese economic ambitions such as the Belt and Road Initiative (BRI) whether directly or indirectly.

– Based on the abovementioned reasons it seems clear that such agreement is a beneficial for both sides to gain more time and prepare themselves for a second round of the trade war, or at least to stop the terrible consequences of the trade war escalation.

Obstacles of a commercial peace between the two countries

There are many obstacles or barriers that prevent a long-term commercial peace between China and the US such as:

The low level of trust between the two countries because of many of the thorny issues among them such as addressing Intellectual Property Rights (IPR) protection, the synthetic opioid fentanyl being sent from China to the United States, non-tariff barriers, cybercrimes, cyber-security, services and agriculture; and especially after the United States accuses Beijing of forcing American and foreign companies in general to disclose trade secrets versus access to the Chinese market.

The different understanding of the agreement by the two sides and the lack of clear future trade talks between them are also stumbling blocks in commercial peace way; while president Trump pledged to freeze tariffs in exchange for China’s commitment to reduce bilateral trade deficit with the US, but it is still unclear what exactly Beijing proposed; where the reports published by China’s state-owned media completely deny Beijing’s commitment to reduce the trade deficit with the US. In addition, whether China can reduce its tariffs on the American products, also the quantities and timing to resume its purchases of American goods are not clear. In addition to tariffs on Chinese goods, Trump has imposed tariffs on steel and aluminum imports into the United States this year. Numerous countries have filed litigation at the WTO to contest the levies.

Arresting the chief financial director of Huawei Communications Technology in Canada (the daughter of Huawei’s founder, the second largest smart phone company in the world)on December 1st 2018 (the same day as the agreement was concluded); and the American requests to extradition on charges of posing a threat to US national security arguing that the technology it uses can be used by the Chinese government for espionage. Additionally, the US companies were banned from exporting to the Chinese telecommunications company ZT earlier 2018 due to Iranian sanctions had been violated. Accordingly, the Chinese Vice Foreign Ministry has summoned the US Ambassador to China on Dec. 9 in a protest over the arrest. There is no doubt that this issue will affect the scheduled talks between the two countries; While the Trump administration insists that it will not affect the ongoing trade talks, Beijing believes that it is just an American attempt to contain China’s technological ambitions. In response, Beijing may have to take some measures to calm the mounting public anger, bearing in mind that a Chinese court decision to ban the sale and import of most iPhone models on Dec 10.

The fact that the competition between the two countries is much farther than the limits of the trade warand trade is one aspect of this competition, where from the Communist Party of China’s perspective the United States seeks to bring about comprehensive changes may reach the extent of changing the Chinese political system, and obstacle the Chinese economic and political aspirations.

Indeed there are many indications that the Trump administration consider the issue as much greater than a trade war by aiming to contain or undermine China’s rise in the world and maintain the American economic and political hegemony over the world for instance the US national security strategy and Trump hint to withdraw from the Nuclear Weapons Agreement, the declaration of the free and open Indo-Pacific economic zone, and the American opposition to BRI as well as the Made in China 2025’splan. In addition, the adoption of the America First policy gives the impression that the United States is seeking concessions, not to improve trade relations, but to maintain American hegemony. Furthermore, the historical experience proves that the American perspective in dealing with the international issues mostly characterized by realism features, where as soon as it considered any state as their rival the caution will prevail on their relations and keeps working and set strategies to win the zero-sum game with this state.

The narrow timeframe of the agreement, which lasts for no more than 90 days for further talks with the aim of structural changes on some thorny and complex issues, therefore, it is difficult to resolve this long list of issues in that short timeframe.

Furthermore, the two countries are also at odds over some other issues such as the China’s extensive claims in the South China Sea and U.S. warship movements through the highly sensitive Taiwan Strait.

Future of US-China Trade Relations

Whether the two countries could reach a commercial peace or not is depending heavily on their ability to overcome the above challenges and the real willingness of both sides to take concrete steps to end their trade war.

From one side, there are some steps or measures from the both sides to contain and avoid the escalation of trade war such as President Xi’s agree to designate fentanyl a controlled substance during the meeting, the Chinese announcement to slash on US-made autos from 40 percent to 15 percent in an attempt to show its willingness to calm the tension with Washington.

In the same context, whether the annual sessions of the National People’s Congress, the Chinese People’s Political Consultative Conference (CPPCC) scheduled for March 2019 may lead to substantial changes to China’s economic policy will be a decisive factor in determining the future of the US-China trade war. On the other hand, the announcement of President Trump on December 11 that he may intervene in the Justice Department’s case against the chief financial director of Huawei if it would be in the interest of U.S. national security and help forge a trade deal with China, gives an impression that both sides have a desire not to escalate the trade war or at least express their fearing about the consequences of this escalation.

From another perspective, it’s arguable that the US-China trade agreement is very similar to the agreement between Washington and the European Union in July 2018, which included strengthen the free trade measures and the announcement of more European purchases of the American agricultural products. But the agreement is in danger of collapse, with President Trump threatening once again to impose a 20 percent tariff on all cars and spare parts imported from the EU. The same scenario is possible with China as long as it serve the American interests, especially with the lack of a final agreement on what Washington considers as unfair trade practices by China in the areas of cyber espionage, piracy and intellectual property rights violations. With bearing in mind that the White House said talks would take place to resolve within the next 90 days specific US complaints such as forced technology transfer, or else existing 10 percent tariffs would go up to 25 per cent.

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New Era of China – India Relations

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Modi’s informal visit to Wuhan china as a indication of Sino – Indian rapprochement reason being both are world important engines of economic growth, economic globalization and making positive contribution toward peace and development .Regardless of Wuhan’s outcomes, India remains wary of China’s deepening regional influence, primarily through the Belt and Road Initiative (BRI), which Xi sees as not only a vehicle to deepen China’s clout but as holding domestic value in showcasing his country’s emergence. China also convincing India that the China-Pakistan Economic Corridor is economic cooperation and does not influence China’s impartiality.

China and India recently locked horns on Dokalam issue, a 72 days military standoff was the result of the accretion of mistrust between the two countries. Modi and XI emphasized the need for greater cooperation and encourage CBMs to this reason because its conducive for development of the people and as well as the region. In Wuhan informal summit both leaders agreed to undertake joint economic and developmental projects in war-torn Afghanistan which is in the backyard of china and India. Foreign secretary Vijay Gokhale who is considering to be the architect of Sino – Indian rapprochement commented during the press briefing that the issue of Masood Azhar who is the chief of jaish e Mohammed also raised with President XI because china has repeatedly blocked India’s bid to designate Masood Azhar as global terrorist in the UN.Similarly, India’s membership bid to the Nuclear Suppliers Group was also opposed by China reason being India is not a signatory to the Comprehensive Nuclear-Test-Ban Treaty or the Nuclear Non-Proliferation Treaty also comes under discussion between two leaders.

The Asian Infrastructure Investment Bank (AIIB) is an excellent example of this “incremental approach.” The AIIB was newly initiated by China in 2015, but India has not only gained significant political capitals in the field of international finance by becoming the bank’s second-largest shareholder, but also has harvested considerable economic benefits as its largest loans recipient. As India has become an important member of the groupings China has major stakes in – the Shanghai Cooperation Organisation, BRICS and the AIIB –  such a multilaterally beneficial “pare to improvement” may well be attained through long-term strategic collaboration and deft diplomacy.

Furthermore, theoretical analysis of this bilateral relationship of China -India make for captivating case study due to strategic complexity, a complex web of interests ranging from tough stands on the unmarked boundaries issue to recognition of Tibet by India as part of China; with quest for energy resources to increasing bilateral trade; from perceptions of encirclement to increased cooperation on international forums and the different domestic political systems. Today China and India are the largest trading partners, with trade touching $88 billion; and target is $100 billion in 2018. Pragmatists add another dimension and said that prospects of china-India relations are not a case of conflict or cooperation, but conflict and cooperation.

On the one hand two countries “agreed to jointly contribute in a positive and constructive way in facilitating sustainable solutions for global challenges including climate change, sustainable development, food security etc. On the other hand, agreed that as major emerging economies, India and China, given their vast developmental experiences and national capacities, should join hands to take lead in offering innovative and sustainable solutions to challenges faced by humankind in the 21st century. These include combating diseases, coordinating action for disaster risk reduction and mitigation, addressing climate change and ushering digital empowerment.” On the same subject, the Chinese government communique says the two countries “agree to join hands in offering innovative and sustainable solutions to global challenges such as epidemics, natural disasters, climate change and terrorism.”

Geopolitics of Sino Indian relations marked by different strategies, Chinese cooperation with Pakistan, India’s look east policy, quest for influence in Indian ocean, china’s string of pearls strategy, south china sea, despite all this Sino- Indian cooperation paving the way from unipolarity to multipolarity. Both are the world ‘s two most populated countries. They have constant the world ‘s highest annual GDP growth rates over the past decade of9 % for China and 6 or 7 % for India. The two countries have been among the world ‘s most successful in surviving the challenges of world Recession since 2008.“It is a good start. More joint projects should be in their shared neighborhood such as Nepal, Sri Lanka, Myanmar and other ASEAN countries. Africa is also a region of full of possibilities,” said Lili, south Asian scholar at the Institute for International Relations at Beijing’s Tsinghua University.

For that reason experts say China and India can’t afford to compromise their economic ties, regardless of conflict.”China has achieved remarkable economic progress in the past five decades, which provides valuable lessons to India’s development. And China’s inclusive and responsible attitude towards globalization for the economic reform (and opening) attracts India’s attention and gives them more confidence,” said Liu Chunsheng with Central University of Finance and Economics.

To be conclude, the territorial dispute, regional geopolitics, and economic competition, catalyzed by misperceptions, will ensure that Sino-India relations will remain competitive in nature. However, the high cost of war, growing economic interaction, and the imperative for peaceful economic development will also help keep the level and nature of competition to a pragmatic level.

A ground-breaking joint Sino-Indian economic project in Afghanistan will send the signal that cooperation can prevail over competition and a message to Pakistan that China recognizes India’s legitimate role in Afghanistan, say strategic experts.

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