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The US Trade War: How China Should React

Dr. Bawa Singh

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During the presidential campaign 2016, Donald Trump had made more than 280 promises. However, the pollpromises were formalized through the “Contract with the American Voter,” on October 22, 2016, listing out about the 60 promises for action, the day President would be in office. Out of these promises, currently the plan to curtail Chinese trade was put in practice by the initiating the trade war with China to bridge up the trade deficit with China. In this context, the new trade war has already been set in by imposing a higher tariff against China, particularly its steel and aluminum. It will remain interesting to see how the trade war will unfolds and how China would react?

Out of the  280 poll promises made during the presidential campaign (2016), Donald Trump formalized the same through the “Contract with the American Voter,” issued on October 22, 2016. Realizing the drastic consequences out of trade deficits with China, Trump rolled out a  plan to curtail Chinese trade was the key plank of “Make US Great Again” policy. At the domestic front, the US administration has repeatedly acknowledged that economic slowdown and unemployment in the country are attributed to the trade deficit with China.Trump criticized frequently the North American Free Trade Agreement (NAFTA). He has taken it as, “the worst trade deal the US has ever signed.” He has also called Trans-Pacific Partnership (TPP) as “the death blow for American manufacturing.” Donald Trump in a video message (November 21, 2016), introduced an economic strategy of “Putting America First.” The main focus of the strategy would be to negotiate  the “fair, bilateral trade deals that bring jobs and industry back to American shores.” Only after the three days after becoming president (January 23, 2017), the President Trump withdrew the US from theTrans-Pacific Partnership with the conviction to strengthen the U.S.economy.

The most serious concern for Donald Trump is China and hence he avowed to turn the trade balance in the US favourby imposing high tariffs and other non-tariff trade barriers to resuscitate its economy and creation of job opportunities.

Trade Between the US and China

As per the office of US Trade Representative (USTR),China is the largest trading partner of the US. China is the largest goods trading partner of the US, the quantum of whichwas standing at $578.2 billion in two way during 2016. The trade in services between the US and China is stood at an estimated quantum of  $70.3 billion (2016). The exports of the services on part of the US is $54.2 billion while the imports of the same were $16.1 billion having services trade surplus in its favour of the value of $38.0 billion (2016).The exports of goods on part of the US is totaled at $115.6 billion, whereas the imports of the same is  $462.6 billion. Therefore, as far as the trade balance is concerned, it is in favour of China,totaled at  $347.0 billion in 2016.

As far as the US export of goods is concerned since 2001, it has shown exponential growth i.e., 503%. In 2016, it was reached to $115.6 billion, however, the same has shown somewhat minor slump i.e., 0.3% ($330 million) during the year of 2015. The top goods include in the export category are agriculture ($ 21 bn); grain, seeds, fruit ($15 billion); aircraft ($15 billion); electrical machinery ($12 billion);  machinery ($11 billion) and vehicles ($11 billion). In the services category, the export was estimatedat$54.2 billion (2016). It is said that it was increased roughly 908% since 2001. The leading services exports from the U.S. to China are intellectual property (trademark, computer software),travel, and transport sectors.

The US is the largest destination for Chinese exports. The Chinese goods export to the US is totaled $462.6 billion (2016). However, it has shown somewhat decline at the rate of 4.3% ($20.6 billion) from 2015, but it has shown continuous increased growth at the rate of  60.8% since 2006. The Chinese contribution in the overall US goods import accounts for 21.1% (2016). The Chinese goods export list included electrical machinery ($129 billion), machinery ($97 billion), furniture and bedding ($29 billion), toys and sports equipment ($24 billion) and footwear ($15 billion). China is the 3rd largest agricultural goods exporter to the US i.e., $4.3 billion (2016).

The major concern on part of the US is the trade deficit, which is in favour of China. In 2016, the same was stood at $367 billion (2015), however, it was decreased at the rate of 5.5% decrease ($20.2 billion) totaling at $347 billion in 2016. Again, the trade deficit reached $375 billion (2017). The US exports to China were only $130 billion, whereas its imports from China were $506 billion. Moreover, China is the largest lender to the US. The debt of the US from China as of January 2018, is $1.17 trillion. The leadership of the US percieved that it gives a massive political leverage to China over the US fiscal policy.

Trade War Between the US and China

The major root of the trade war been the US and China has been embedded in the trade deficit. Even being a major power, the US has not been able to bridge up the gap of trade deficit. It has been argued that trade war originates from Chinese trade and industrial policies. Apart from these policies, Chinese currency manipulation has further put the both countries on confrontational mode. However, Trupms’s being one plus year in office, the trade deficit has not been showing any positive sign in the US favour. Ultimately, hehad  to launcha salvo of tariffs against China as in the year of 2017, the U.S. trade deficit with China is stood at US$   375 billion in 2017. The  U.S. exports to China is only $130 billion, whereas it imports stood at $506 billion.

The trade deficit of the US vis-a-vis China has been percieved as a consequence of the latters’restrictive trade practices. The restrictions include a wide array of barriers to foreign goods and services. Although, China has introduced its open market economy in 1978 and even expanded the scope of the same after becoming the member of the WTO (2001). However, China  has introduced the market economy but its trade and industrial policies are aimed at protecting the state-owned enterprises by levying the high tariffsover the imports. Moreover, the other restrictions such as theindustries required special permission to import goods, inconsistent application of laws and regulations, transfer of technology from the foreign firmsfor the Chinese market access etc. Apart from these restriction, the lack of transparency and currency manipulation on part of China have been emerging as major concerns for the Trumps’regime. Therefore, it has become a major compulsionon part of the Trump regime to take a hard-line stance against China.

Within the seventy-day in administration, the President Trump  in his administration’s annual trade policy report to Congress (March 2017), had openly challenged the World Trade Organization (WTO)particularly for “China’s unfair advantage.” He went further with the accusation of  Chinese dumping of  steel,  aluminum and chemical products. In the same month, the US Department of Commerce had announced two antidumping (AD) and countervailing duty investigations (CVD)against China. Even the pre-Trump regimes have also been engaged with China over the dumping casesin the WTO. The Obama administration had become frustrated over Chinese economic reforms and increasingly skeptical about the prospect for future reforms. Till date, the US has registered 16 cases against China, to address its concerns such as Chinese Ads, CVDs, industrial policy and the dominance of state-owned enterprises.In this background, China has turned to the Dispute Settlement Mechanism (DSM) of the WTO to address such perceived unfairness use of such investigations. China had filed 11 cases against the US at the WTO as the former percieves per se the leading target of the USs’ AD and CVD investigations. Robert ELighthizer (United States Trade Representative) has also givenan indication that the U.S. may take action against the WTO for its alleged failures not to check the Chinese unfair trade practices.

President Trump has aired portentous signals with the beginning of the year of 2018. The salvo of high tariffs had launched against its trade deficit with China. President Trump by using the Section 301 of the US Trade Act of 1974, had unilaterally imposed trade tariffs on China. In January, he imposed tariffs on solar panels and washing machines. In a tweet issued on March 2, 2018, Trump asserted that “Trade wars are good and easy to win.” President Trump had signed an executive memorandum on 22 March 2018 to enforce  25 percent tariff on steel and a 10 percent tariff on aluminum imports. The measures have been designed to counter the Chinese unfair trade practices as the administration believes that it involves stealing of the US companiesintellectual property. Trump gave signals that the tariffs would cover at least cover  $60 billion in tariffs on Chinese goods.

Chinas Reactions

China has reacted very aggressively to the US’s new trade war. It has been seen that China is in assertive mode and not going to budge to the US pressure. The Chinese Foreign Ministry spokeswoman Hua Chunying said, “We don’t want a trade war, but we are not afraid of it.”If we unfold the statement, it clearly conveyed the message to the US, how China is likely going to take the sanctions? Moreover,  the Chinese Commerce Ministry has  also used the same tone and tenor while asking  the Trump regime on 28 March not to go ahead with such planned tariffs. It can be taken as a warning signal to the Trump regime as China could set off a same chain of  reactions. Moreover, the Xi governemnt has given clear signal that China would,“fight to the end.” Although, the US economically and militarly is in stronger position but at the same time China has also been following the suit. China has been emerged a stronger economy, moreover, it is a major lender to the US which gives its stronger position vis-a-vis the US. If the trade war lingers on, the losses or gains are not unilateral. One can percieve  that the US has to suffer more losses as compared to China. The developing countries have already opened up and messed up their economies under the global instituions’ pressure. In this milieu, loss of employment opportunities, health services and education, suicides of the farmers, loss of local industries and many more challanges have become the part and parcel of the people’s life.  In this miliu, it should be left to the individual countries’ decision, how much its economy is to be opened? Moreover, if any country is asked for the same, it should be under the international laws, not as per the invidual countries’s whimsical and impulsive actions.

Dr. Bawa Singh is teaching in the Centre for South and Central Asian Studies, School of Global Relations, Central University of Punjab, Bathinda, India-151001. bawasingh73[at]gmail.com

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East Asia

“Mask Diplomacy” and Understating China’s Confucian Strategy in International Relations

Punsara Amarasinghe

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It is by no means a hyperbolic phase to call the year 2020 as Anus Horribilis by virtue of the events that have befallen from the very first month. The new year bells rang amid the bush fires in Australia and within seventy-two hours after new year eve the US assassinated Iranian top General Soleimani in Iraq creating an extremely tense situation. Then within a week, the greater disturbance escalated into a worse scenario when Iran launched an attack on the US bases in Iraq.

However, all the above-mentioned events became less significant and probably forgotten when COVID 19 became an unmitigated disaster creating chaos around the world. But when it emerged in China at the end of 2019 the morbid fascination shown by the US foreign policy analysts was a palpable factor as the US perceived that repercussions of COVID 19 in Wuhan may inevitably stagnate the magic economic growth that China has been witnessing. But this irrational jubilation was short lived as it ultimately turned to irrational disappear with rapid spread of COVID 19 as a global pandemic which has now brutally wounded the USA making it as the current epicenter whereas China has slowly begun to recover from its eleventh-hour moment. The unexpected situation erupted in the West before coping with the corona virus was followed by China’s evasive global aid campaign against Coronavirus as Chinese opted for “mask diplomacy” by sending medical supplies to European countries and the portrayal of China as the scapegoat was vindicated by these actions.

So, it is intriguing that, especially the growing emphasis on China’s liability for concealing the corona virus when it emerged in Wuhan from the global community, that China gleefully clung to its mask diplomacy across Europe when European solidarity was at stake. Especially, China’s gusto in supplying medical aid and masks to Italy was a notable factor as it has altered the hostile public perception pervaded in Italian society towards China’s BRI (Belt and Road Initiative). For example, there was a massive criticism on Chinese BRI project in Italy, particularly in relation to its potential threat to debilitate Northern Italy’s economy. China seized the moment in such a berating atmosphere towards them in Italy as the good Samaritan. China’s massive medical supply and masks to Italy even as European Union failed to rally around one of is leading economies played a crucial role in China’s position in Italy. In fact, Italy was just one example showing the astuteness of China’s mask diplomacy amid many COVID crisis.

Nevertheless, the causes rooted in Chinese bonhomie seems to have been propelled by Xi Jin Ping’s biggest dream of leading China to the global political realm and the apathy shown by the USA contrary to its historical Atlantic alliance with Europe boosted China’s “Mask’s Diplomacy” significantly. While ascertaining the Chinese strategy amid the COVID crisis to uplift their good name in the Western world, one cannot forget the trajectories shaped up Chinese foreign policy that have mainly derived from Modern Chinese infatuation with their ancient Confucian values in diplomacy. The Gift giving has been depicted as rather essential feature in Confucian ethics and it was well applied by several dynasties in imperial China to expand Chinese influence beyond its frontiers. China’s ethical guru Confucius venerated ethics over law.In emulating the principle of virtue, the importance given to ritual has played a significant one, because in the Chinese ancient book of rites, the governance and giving were linked to ritual. It was believed that gift giving as a ritual was filled with reverence and sense of generosity and also it was expected to receive blessings from the receiver.

The Confucian ethics prevailed in imperial China reached its nadir after the formation of People’s Republic of China grounded on Communism. Yet, its importance came back to the practice with steeping growth of China as a global political, economic and military power in the late 20th century. In particular, the famous gift giving strategy adopted by Chinese leader Deng Xiaoping in the 80’s to make comity with the USA was known as Panda Diplomacy which resulted in a considerable diplomatic triumph for China.

From a vantage point the Chinese strategy of sending medical aid and masks to foreign countries, especially to EU states is akin to how Chinese approach to develop foreign relations under Confucian values, but its deeper political expectations seem to have been envisaged by the west with a sense of doubt. Especially, China’s act of sending masks and medical aid was seen as a way to extend Beijing’s political leverage to other countries and divert world attention from discussing China’s culpability for spreading corona virus. The Chief of the European Union Joseph Borell has described this phenomenon as “the politics of generosity”, simultaneously the West has lampooned China for conducting provocative campaigns against neighboring countries from Taiwan to Japan by taking the advantage of corona chaos. The criticism focusing on Beijing’s actions are been propelled by China’s contemporary attitude to increase its participation in global politics contrary to its initial claim on peaceful rise, which used to be the mantra of Chinese depiction of their yearning to become a super power under Hu Jintao.

Given this situation of West’s ambivalence to view Chinse “Mask Diplomacy” as an evasive action to change the global attitude towards China, the Confucian ideals need to be reexamined as it guides foreigners to fathom how Chinese vision works. As I stated above gift giving culture played a dominant role in ancient China under Confucian ethics to underpin the social harmony. Throughout its civilizational saga, China always called herself the middle kingdom and kept paternal relations with the neighboring states. Thus, it is justifiable to argue the way Chinese have been using the the Mask Diplomacy is not entirely an act of manipulation of opportunities as it has been vehemently critiqued by the West. Indeed, its roots have derived from China’s unique civilizational approach to international affairs.

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China and Hong Kong

Giancarlo Elia Valori

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The real crucial event in China’s current policy, not only for Hong Kong, was the document on “State Security in the Hong Kong Territory”, voted in the recent National People’s Congress at the end of May.

 The document drafted by the National People’s Congress regards above all the Chinese national security and hence the internal security of the Fragrant Harbour, as well as the direct control of the strategic and public security situation of the anti-Chinese political opposition in Hong Kong, and, in particular, the reform of Article 23 of the Basic Law which governs the former British colony.

It should be recalled that two Opium Wars started from there only against mainland China. The opium was cultivated by the British East India Company in its territories in Bengal.

From 1839 to 1842 and from 1856 to 1860, as many as two trade and military conflicts allowed the actual British monopoly of the British and Indian opium throughout the Chinese territory.

Let us revert, however, to Article 23 of the Basic Law, which formally prohibits any act of treason, secession, sedition and subversion against the State of the People’s Republic of China, as well as the theft of State secrets.

Therefore, the Chinese government now acts autonomously, in the territory of Hong Kong, for the defence of its interests. This also paves the way for a wide geopolitical transformation, in some ways more “radical” than the one which Deng Xiaoping carried out in 1978 with the Four Modernizations. It should be recalled that they ended with the most important Modernization for China, namely the military one.

The first attempt to adopt national security legislation in Hong Kong was made as early as 2003, when at least half a million people demonstrated against said legislation – very similar to the present one – proposed and established by China. Later there were several other security bills and, again, other large mass demonstrations.

 Until the demonstrations of April 2019 against the Chinese bill to stop the extradition of PRC’s citizens to the Fragrant Harbour.

At the time demonstrators shouted “Liberate Hong Kong, revolution of our times”.

Certainly China has often stated it sees Hong Kong’ security severely affected by the operations of various and unspecified “powers”, which (undoubtedly) use Hong Kong to penetrate China and later possibly carry out separatist operations (Uyghurs, Tibetans and other riotous and unruly minorities),as well as infiltrations – sometimes military ones – and finally what China calls “harmful operations”.

 Certainly these “harmful” operations also include those by Europe and the United States, which already repeatedly urge many “partners” and companies of the Global Value Chains (GVC) already present in China to move to the small territory of the Fragrant Harbour. This is also an objective cause of the improbable request for an “independent” investigation on the causes of the outbreak and spreading of the Covid-19 pandemic from the Chinese laboratories of Wuhan, Hebei.

A real attack on global economic development, and on China’s economic security, right now that China is quickly transforming its production formula.

China wants to thwart such a move by bringing many production chains directly back into its territory, and by increasing the Chinese strategic (and hence financial and economic) pressure on the U.S. traditional allies in South-East Asia and the Pacific.

 Not necessarily the Southern Pacific only.

However, we will come back also to this point. As can be easily guessed, for China this is a strong point for the direct control of the Fragrant Harbour’s territory.

 However, a historical and ancient condition is no longer in place, i.e. the separation of Hong Kong’s legislation from Great Britain’s and currently China’s.

Obviously the Chinese decision is also a clear heave-ho given to Governor Carrie Lam and to the entire government in Hong Kong, by-passed in a few hours by the very clear Chinese diktat.

China has probably calculated the pros and cons of this move very well.

The cons, which are not insurmountable, include the reduced importance attached to Hong Kong as the only financial and industrial hub in the Chinese territory, which is also fully Westernized and globalized. This also greatly serves the PRC’s direct interests.

 The U.S. interests in the Fragrant Harbour will no longer be safe and this is not a negligible issue: 1,300 medium-large North American companies and 82.5 trillion U.S. dollars in direct investment.

Not to mention the dozens of NGOs that support democratization in Hong Kong against China and the many large global media headquarters in Hong Kong, as well the several operations of infiltration, intoxication and information manipulation (including some financial and industrial ones) that the West has carried out against the People’s Republic of China, starting from the Fragrant Harbour.

 From now on, for the whole West, Hong Kong’s gateway will be closed with seven seals.

Certainly, when the People’s Republic of China feels threatened, it always sacrifices the economy to global strategy.

Certainly Hong Kong has always been China’s financial lifeline, especially in difficult times.

Currently, however, Hong Kong is an irreplaceable global financial hub in Asia. Nevertheless, I imagine that China will soon want to use other less dangerous and, above all, less close channels to connect to global finance.

 Moreover, for the first time since 1992 – and, probably since 1978, the year of the Four Modernizations, if we analyse older time series – the Chinese economy is slowing down considerably due to the outbreak of the Covid-19 pandemic, although with less severe damage than in the United States and in some E.U. countries.

The PRC’s first objective was to resume economic and industrial activities in full swing, while the second one was to make the Fragrant Harbour safe.

 But, once again, there is a pro versus a con: while Hong Kong and, for other respects, Macao and Singapore, have been the destination areas of huge amounts of capital resulting from the corruption and embezzlement of many Chinese elites, Hong Kong’s closure will probably also mark the end of the great hunt that President Xi Jinping and his power group have focused on corruption within the Party and Beijing State.

The old strategy of “Power putting down roots”, as recommended in The Prince by Machiavelli.

Hence President Xi Jinping wants to directly control the Fragrant Harbour, the original site of China’s forced Westernization, from the beginning of the “century of humiliation” (precisely with the first Opium War) to its end, with the PRC’s declaration of independence by Mao Zedong – “the Chinese people have stood up!” -at the Gate of Heavenly Peace Square, in 1949.

The countries that are bound to win in the world arena are those with long and very long memories, while the post-modern and childish forgetful ones are always bound to lose.

Obviously – as was also seen in the very recent National People’s Congress in Beijing – Hong Kong is also a powerful sign for regaining Taiwan politically and economically.

Recently, China has announced a 6.6% increase in the Defence budget from 1.72 trillion yuan (187 billion U.S. dollars) and Li Kekiang, Beijing’s Premier, has made it clear that “China resolutely opposes and will deter any separatist activity seeking Taiwan’s independence”.

 Normally, the Chinese authorities speak of “peaceful reunification”, but this time Li Kekiang omitted the adjective. It was not a distraction.

 In Mao Zedong’s time, the always synthetic and enlightening formula of the Chinese leadership was available for Hong Kong: “long-term planning, full use”. Later the “one country, two systems” formula initially developed by Deng Xiaoping was used, later reaffirmed by the various leaders and so far supported by President Xi Jinping himself.

This Chinese choice on the Hong Kong Security Law, therefore, means only one thing: the end of the old Cold War between the West and the PRC, and hence the beginning of a new phase between China and the United States, which will be “hot” or “cold” depending on the circumstances. Therefore, China has no need in the future – not even financially – to have Hong Kong as a buffer zone with a relatively peaceful, but always radically adverse West.

 Both the USSR and Mao Zedong’s China have always regarded the “Cold War” as an unstable phase in which victory is decided by the amount of arsenals, their doctrine of use and the political will to use them as instruments of credible pressure.

Certainly, Mao knew all too well – and it was one of his most enlightening strategic insights – that the “Cold War” was a paper tiger and those who believed in it could only consume themselves, politically and economically, against the United States and its allies – something that punctually happened with the USSR, which collapsed because it had not renounced in time to a clash impossible to win and which, at most, would give it the “great European plain”, as Hegel and Raymond Aron called it.

Hence China quickly closed its accounts with the Fragrant Harbour, pending the closing of the subsequent operations also with Taiwan and all the other controversial areas, from the Philippines to the South China Sea, from South-East Asia to Malaysia and the Indian Ocean.

The old map – born with Kuomintang, but which was also very popular among Chinese Communist leaders in the 1950s, in which the new Chinese territorial waters beyond the Philippines’ line and throughout the Eastern Pacific could be seen -has not been forgotten at all.

 The United States has obviously “condemned” the Chinese decision, while Great Britain, Australia and Canada have signed a common document expressing “deep dismay” at China’s decision.

Furthermore, the United States already has the Hong Kong Human Rights and Democracy Actof 2019 available – pending the great demonstrations which characterized that year and are currently collectively called the Water Revolution.

 Therefore, by virtue of that Act, the United States could remove the preferential trade status of Hong Kong, possibly with the extension to Hong Kong of the tariff and trade sanctions already in place against China. It should be recalled that these restrictions are worth67 billion U.S. dollars per year.

Hence China’s goals for its actual regaining of the Fragrant Harbour are manifold and complex. Firstly, there is the closure of the financial closed circuit between China and Hong Kong, to be put into effect with the minimum international reaction. Secondly, there is also China’s need to rebuild the central and decisive position of the Chinese economy in the Global Value Chains – a position which, even before the “taking” of Hong Kong, had diminished in importance, but which would currently be fatal, especially if it arrived as a result of the Covid-19 pandemic.

Obviously China also regards Hong Kong as a strategic, unavoidable and essential location for controlling the South China Sea militarily. The Chinese always reason with what De Gaulle called the “two caps”, i.e. the civilian and the military one, which must always be kept together.

 Certainly, the peaceful regaining of Hong Kong is also a breaking point of the current U.S. geopolitics in the region: from the Far East probably to the Middle East, the United States has always thought of a long strategic-military continuity that would encircle Russia and close China in its hardly controllable terrestrial mainland.

Hence China’s full control of regional seas will no longer enable the Russian Federation to depart from the project hegemonised by China, the New Silk Road, while the “small silk road” already planned by Russia, mainly with Japanese but also U.S. capital, will be either integrated into the Chinese one or destroyed.

Finally, as already mentioned, China wants to speed up the process to separate Taiwan from the Japanese and North-American military “umbrella” protecting it.

Here we need to carefully examine the relationship between “Xi Jinping’s policy line” and the 1998 theory of unrestricted warfare.

China, which is aware of not yet being clearly superior in terms of “conventional” or traditional warfare, even if technologically advanced, must absolutely win its total war, its new unrestricted warfare.

Hence another reversal of the Cold War theorem: while, during the whole conventional phase of the Cold War, China depended on Russia for military technology, currently it is Russia that depends on China for orders and financing-purchases – although with its own often excellent and innovative war technology.

Hence if China, which has also acquired – both legally and in other ways – excellent Western, and not only post-Soviet military technology, wants to wage war – even regionally and indirectly –  against the United States, it must necessarily do so in time, before the United States rising up to China’s technological-doctrinal challenge, with the weapons it would like to have and has not yet, instead of those it already has.

Furthermore a war game conducted by the RAND Corporation in early March 2020, demonstrated that, in an armed conflict, the United States would lose both against China and the Russian Federation, obviously considered separately.

As also the U.S. analysts maintain, on the neo-technological – and hence also doctrinal level – the United States lags behind China with regard to strategic and missile precision weapons, hypersonic systems and guidance systems for all theatre ballistic weapons. While the United States is still superior in tactical weapons and in conventional medium-high technology weapons.

 The United States, too, has suffered the conceptual impasse of the “Cold War”.

Also the F35 missile could be an excellent weapon for air supremacy, but – as a U.S. analyst said – it could be bombed to the ground by China or Russia.

 Other always accurate and updated war games, conducted by U.S. analysts, show that the United States would be clearly defeated even in the South Pacific, or by Russia in the Baltic, but certainly China would win in a regional clash to take Taiwan, while both Russia and China are working on the new anti-access/denial area weapons (A2A) quite successfully.

 Meanwhile, President Xi Jinping has shifted his strategic interest from the ground forces of the People’s Liberation Army (PLA) to the PLA’s Navy and then to the Air Force, but especially to the Strategic Missile Force and the more recent Strategic Support Force.

Today there is still a window of opportunity, which will last until the end of 2020, so that China can neutralize the U.S. fleet more than a hundred nautical miles from its coast and from the coast of Hong Kong, Macao and Singapore, as well as neutralize the U.S. missile systems both in Guam and Japan and in the small islands of the South Pacific.

Here is the strategic pendant of China’s choice on Hong Kong’s internal security.

Taiwan could also be the operation that makes the war escalate up to its nuclear level, but it is not said that the Chinese supremacy, still viable in a clash with the United States, decides to get to that point, although, probably, it will strike first and, hence, harder. But it will try to stop operations before the U.S. decision to go for the nuclear blow.

 Nor should we forget the regional war that China waged with India precisely in May 2020, in the area of Lake Pangong Tso and the Galwan Valley, with a quick peace negotiation for controlling Ladakh, a border area still disputed by China, as well as an always very fast operation of the Chinese Forces in the north of Sikkim, again at the beginning of May 2020.

We do not know yet whether all future Chinese operations will be lightning ones.

Hence we need to place the Hong Kong issue within this line of thinking.

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A comparative analysis of the socialist and the capitalist approach towards COVD-19: China and the U.S.

Gumbu Yeukai Lorreta

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“Our greatest strength lies in our socialist system, which enables us to pool resources in a major mission. This is the key to our success.” -President Xi Jinping

The COVD-19 pandemic was first reported in Wuhan, China in December 2019. The COVD-19 cases drastically dropped in China as a result of robust measures; however, the diseases rapidly spread across the globe. The results of the study revealed that although China indicated early warning of COVID-19 many countries were caught unaware. These include the UK, Italy, Spain, the US, and the majority of African countries. Most countries delayed detecting the COVD-19 virus and this their ability to respond efficiently and effectively. However, some of the lessons learned from the COVD-19 pandemic might contribute to better preparedness in the future. The study recommends that the US should prioritize the right to life before profit. This commentary shall make a comparative analysis of the socialist and capitalist approaches towards COVID-19

The World health organization declared the COVD-19 a global pandemic in March 2020. Currently, the COVID-19 has topped 6, 056, 021 deaths neared, 367,305 and 2,681,569 recovered The US recorded approximately 104,548deaths and China 4,634 deaths (Wordometer May 30, 2020).China had controlled the COVD-19 epidemic by early March. However, Europe and America became the new epicenter of the pandemic. The COVD-19epidemic exposed the gap in the capitalist nations’ commitment to fighting large scale infectious outbreaks. These include lack of effective strategies, play-back approach, underestimation, and uncoordinated health system. Major outbreak has been recorded in the US, Italy, Spain, Denmark, and Germany. As such, most countries adapted lock-downs, curfews, social distancing, travel restrictions, and canceled public gatherings. However, intervention measures were inefficient in the absence of a coordinated health care and strong support system. Many socialist states were able to flatten the COVD-19 curve in their countries due to ideology and commitment. For instance, China, Vietnam, and Cuba. Socialism maintains the principle of right to life before profit. Further, it entails the provision of the best health-care, decent shelter for the homeless, safe water, education, and life for all. Nevertheless, the capitalist upholds profit before the right of life.

History teaches us that many countries implemented social distancing amid of the 1918 Spanish Flu. Nearly 675 000 people died in the US and millions around the world (Lopez, 2020). Further, the 2009 A (HINI) pandemic also led to the cancellation of public gatherings such as universities and schools. As a result, the transmission rate reduced by 30% (Kelly, 2020). However, the rate of infection increased when normalcy was resumed. Moreover, Americans failed to respect experts control measures such as social distancing leading to increased rates of infections and the death of thousands of people.

President Trump has blamed China for deliberately provoking a disease that caused widespread suffering. However, despite China’s efforts, western anti-communist attitudes make it difficult to acknowledge China’s successful and intensive efforts. President Donald Trump ushered anti-Chinese sentiments and referred COVD-19 as the China virus rather than drawing lessons from China’s successful containment of the pandemic. However, scholars have blamed President Trump for spreading some political lies. So far the virus is unknown, might have occurred naturally or bats can be the host of the virus ( Kindrachuk, 2020).

Noteworthy, China gave advance notice of the impending crisis of the COVID – 19 to the world several weeks before it spread to other countries. Chinese Centre for Disease Control was committed to international cooperation and immediately published the entire COVD-19 genome virus after being identified. However, most countries responded lately to the pandemic. Despite possessing vast resources, developed countries failed to upgrade the health care delivery system. For instance, increasing human and physical resources such as protective clothing, ventilators, and test kits. Public health responses were intensified by the end of February and early March 2020. These included tracing detention, quarantining of people returning from highly infected regions, physical distancing, and shift-work. However, cases had already multiplied. The US was unsuccessful in taking necessary precaution measures in time.

Moreover, unrecognized cases contributed to the acceleration of the COVD-19 epidemic in many capitalist states. For instance, in the US COVD-19 cases were difficult to identify because the pandemic started during the influenza season. Furthermore, large gatherings, travel-associated importations, pre-symptomatic spread, densely populated areas such as New York and Texas led to the rapid spread. High-risk workplaces such as the meat market further exposed workers.

China responded aggressively in the absence of a vaccine and adapted rigorous testing, social distancing, contact tracing, isolation of patients, and closure of Hubei Province. This was one of the greatest efforts in history. China also adopted a non -negotiable top priority of meeting people’s needs. More than 30,000 health care providers were deployed to Wuhan from all over China and forty-five hospitals were designated for COVD-19 treatment. More so, other buildings and exhibition centers were converted to 12 temporary hospitals. Two new hospitals that had a carrying capacity of about 1,300 beds were constructed. However, the US downplayed and failed to place contingency plans after a handful of case such as testing facilities, and self -isolation of immune-compromised people like old and HIV positive. Later, a task force to fight the spread of the disease led by Vice President Mike Pence was formed.

The Chinese government announced free testing and treatment including the sophisticated and expensive techniques such as extracorporeal membrane oxygenation. The latest developments in artificial intelligence were adapted such as the use of medical imaging and robots. Efforts were made to mitigate the effect of the crisis on people’s daily lives. The Communist Party of China (CPC) ensured that all people on medication received their prescriptions and every household was given food handouts. Furthermore, payment of wages continued provision of subsidies and credit card payment. Online shopping of food, was also encouraged in China and online education. The US issued home orders starting in April; however, people could go out to purchase medicine and food. Therefore, Americans were further exposed to the virus. Further, these restrictions were to expire end of April and American cities were to reopen for business. As such, the majority of the American cities announced re-opening for businesses as they are capitalist oriented. China eased the restrictions of the look down gradually city after city thereby flattening the cave of COVD-19 cases.

Artificial intelligence was widely deployed in China such as a prediction model-assisted authorities in Shenzhen and Chongqing. Outbreaks were predicted before they occurred and the accuracy rates were almost 90%. AI computing capabilities were provided for free by Alibaba Cloud to public research institutions and to support protein screenings and virus gene sequencing. China did set up temperature checking stations throughout the country. Every person was asked to have a health code application on his or her smartphone and the user could report symptoms. Therefore, health officials were enabled to check and trace the spread of the virus quickly. Nonetheless, in the US the Coronavirus Aid Relief, and Economic Security Act (CARES Act) was signed into law on 27 March 2020. Stimulus payment was offered by the CARES Act to the US citizens. Furthermore, the US government encouraged telehealth services, employer-sponsored health plans to cover part of COVD-19 testing, and no co-pays. However, all these policies lacked proper coordination by the government leading to the rapid spread of the disease.

The main point of departure between the capitalist countries and socialist countries is the control of capital. Capitalist countries are under the control of capital, whilst socialist nations control of the capital. The economy is directed by the state. For instance, finance, energy, heavy industry, transport, communications, and foreign trade. The centralized system of China enabled it to mobilize resources easily.

China embarked on a program to assist other affected countries. For instance, it sent medical teams, tens of thousands of testing kits, ventilators, and millions of surgical masks. Countries that benefited includedItaly, Cambodia, Poland, Spain, France, Poland, and the Philippines. African countries such as Zimbabwe, Djibouti, Burkina Faso, Algeria DRC among others also benefited. Likewise, the US also assisted the most at-risk countries including humanitarian assistance to 10 members of the Association of Southern Asian Nation(ASEAN). Further, the US provided funds to multilateral organizations such as World Health Organizations.

The COVD-19 epidemic does not respect the economic status of nations. Socialism has appeared superior to capitalism as far as protecting the fundamental human right of life. Wealthy countries are struggling to contain COVD-19 due to a lack of coordination in the health sector and delayed mitigation measures. The COVD-19 pandemic has exposed the ruthless nature of the western capitalism.

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