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Trade War: An Infinitesimal View

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USA China Trade War

In the post Cold War era, the US changed its policies, shifted its priorities and viewing China’s economic emergence as a great threat to its interests in coming decades. With a rapid economic growth, technological advancement and development of its armed forces, China became a future competitor of the US. Due to Chinese rapid economic growth, modernization of its armed forces as well as mounting position in Asian region and sea lanes of transportation, many American analysts take China as its future contestant. As a result, China remained a factor in the US all grand strategies. The ‘China versus the US’ indicate that Washington is taking potent steps against its threat (China). China perceives these steps as a part of the US policy of “hedge” to contain “the mighty China”. This writing tries to examine the ongoing trade war between the US and China in miniature view and suggest the options for China.

Trade wars have finally begun between the US and the China. Before little explanation of this Trade war, let’s discuss the concepts. A trade war is when a nation imposes tariffs on imports and foreign countries retaliate with similar forms of trade protectionism. It is side effect of protectionism that occurs when one country (country A) raises tariffs on another country’s (country B) imports in retaliation for country B raising  tariffs on country’s A imports. Besides this, a tariff is a tax imposed on imported goods and services. Trade wars also commence if one country perceives another country’s trading practices to be unfair. Trade wars are also a result of a misunderstanding of the widespread benefits of free trade. In addition, a tariff is a tax or duty that the government places on a class of imported goods (tariffs on exports are very rare). In theory, this makes the foreign products more expensive and therefore less desirable to consumers-boosting domestic makers of the product, which don’t have to pay the tax. The tariff is collected by customs officials and goes to the government. In addition, Protectionism refers to government actions and policies that restricts or restrain international trade, often with the intent of protecting local businesses and jobs from foreign competition.

The United States and China have imposed a tariff of 25% on imports worth $34 billion after exchanging several threats over the last few months. This marks the official beginning of what China dubs as “the biggest trade war in economic history”. While this trade war is far from the biggest the world has seen, it has the potential to cause some significant damage to the world economy. US President Donald Trump, who began the year by imposing tariffs on imported solar panels and washing machines, has vowed to possibly tax all Chinese imports into the US, which last year added up to a little over $500 billion. President Trump’s tariffs against China will likely resonate with voters who believe in his “America First” campaign and perceive the trade deficit with China as a loss to the US economy. China, not surprisingly, has responded by targeting American exports like soybean and automobiles, a move that could cause job losses in American states that accommodate Trump’s voter base. Other major US trading partners such as the European Union, Mexico and Canada have also slapped retaliatory tariffs on various US goods. On July 06, 2018 the Chinese products $34 billion worth, including goods, flat-screen televisions, aircraft parts and medical devices have faced tariff imposed by Trump administration. .The goods marked for tariffs will now face a punishing 25 percent border tax when they are imported into the US. The Trump administration initiated these tariffs after concluding an investigation into some of China’s ‘controversial trade practices’. The main motto behind the new trade barriers is to penalize China for doing things like forcing foreign businesses to hand over their most-prized technology to Chinese companies – many of which are state-owned – in exchange for access to their market. China immediately accused the US of starting “the largest trade war in economic history to date” and responded by imposing 25 percent tariffs on $34 billion worth of US goods, including soybeans, automobiles and lobsters. According to a spokesperson for China’s ministry of commerce, after Minutes the US tariffs went into effect,

“China promised not to fire the first shot, but in order to safeguard the country’s core national interests as well as those of the people, it is forced to fight back … the US will be opening fire on the whole world and also opening fire on itself.”

Additionally, the state-run Global Times wrote,

“If what the US wants is to escalate a trade war with China, then so be it. A little fighting may be the only way the Trump administration clears its mind and allows everyone to sober up.”

The aggregate amount of trade affected is moderate relative to the US and Chinese economies, but for the US, this is the most extensive import protection since the disastrous Smoot-Hawley tariffs in the 1930s. President Trump has threatened a 10 percent tax on a further $200 billion of imports from China.

In the context of feasible effects on global economy, the trade war between the US and the China could push the world economy towards a decline and it could lead to a collapse of comprehensive as well as global trade. The deteriorate investment, disturb financial markets and sluggish global economy are the major negative outputs of this trade war. This trade warfare between the US and China could extend to worldwide in trade arena and to areas beyond trade. According to economical analysts, the trade conflict among one superpower and other rising power can create disturbance of global supply chains. In addition, the US products which are assembled in third world countries can also be affected. Without a doubt, due to the disturb supply chain, the US consumer could well end up paying higher costs for products. At the end but not least, this trade confrontation between two rivalries of 21st century could affect the world trade system and it could be trade cold war between both countries be like the cold war between USA and the USSR in 20th Century. A thoroughgoing trade war could lead to a collapse of global trade.

Additionally, this trade war could also effects Chinese economy, With the Dawn of 21st century, People’s Republic of China is in a very fair position in the context of Economy to face any economic tornado because in general, its economy is less dependent on exports, and exports to the US in particular. The value added in its exports to the US is less than 3 percent of its economy. In addition, China is at the end of many global value chains, which include inputs from the US, Japan, South Korea and Taiwan. The Shanghai stock market is in main territory, down 23 percent from a high in January 2018. Still, the trade war comes at a bad moment in China’s cycle. The establishment have been tightening financial conditions and trying to restraint in financial risks, so that the economy is slowing, even before it takes a hit from trade. The Chinese currency has depreciated round about 4.3 percent against the dollar for the last past few months.

This is a natural market reaction to the US protectionism. Over the same period, the dollar has appreciated about 5 percent against a basket of major currencies. This is one of the ironies of the US which is trying to use trade taxes. They create uncertainty in the world and one result is that capital flows out of other economies to the US. In the short run, this raises the value of the dollar and largely undoes the protection. Historically, when the US introduces protection, it has typically not led to an improvement in the trade balance, rather the opposite. In the case of US-China trade, 25 percent tax means that about $50 billion of imports will be more expensive, and the US is likely to import less. But the other $500 billion that the US imports will be modestly cheaper because of depreciation and the US will import more. History suggests that the net effect on the trade balance will be minor. This is one reason that the direct effect on the Chinese economy is likely to be minor.

In addition, the effect of this trade war could be on the US economy. The US economy is humming along because of fiscal stimulus from tax cuts plus expenditure increases. Net job gains in June, 2018 were above 200,000, the pattern of recent months. In general, the trade war will destroy some jobs in export sectors and create some jobs in import-competing ones. This is a bad tradeoff because export jobs are generally of higher productivity and pay. The job churning is also disruptive — the lost jobs are likely to be in agricultural states and southern states with auto plants, whereas job gains are probably elsewhere. The Trump White House is betting that, given the overall strength of the economy, some localized pain will be tolerable and the get-tough policy toward China will be a political winner for the midterms. Economically, both the United States and China would lose from a trade war. Punitive tariffs would push up import prices, dent exports, cost jobs and crimp economic growth, so both sides would do best to avoid an outbreak of hostilities.

Here some options for China to retaliate this trade war. In this trade war with China, President Donald Trump wields one seeming advantage: the US could ultimately slap tariffs on more than $500 billion in imported Chinese goods. Beijing has much less to tax: It imported just $130 billion in US goods last year. Yet that hardly means China would be powerless to fight back once it ran out of US goods to penalize. It possesses a range of other weapons with which to inflict pain on the US economy. Here is a look at some of the options China has in this war:

The Chinese government should do trade in local currency. The visit of Pakistan’s Prime Minister Mr. Imran khan Niazi to China give very valuable and authentic suggestion to Chinese government to do trade with Pakistan in Yuan rather than the US dollar $. It will be a direct and indirect hit to the US, her fellows and dollar $ currency. After the successful agreement with Pakistan, China could do trade with other countries in Yuan. Be remembered that China is a chief exporter country of the world with 2263 trillion dollar $. In addition, recently China gives defeat to the US in the context of purchasing oil and makes herself as chief and main oil importer and customer of the world. China could do trade with KSA, KUWAIT, IRAQ, IRAN, QATAR and other oil producing countries in Yuan but the US don’t want this. If the China would successful to do trade with oil producing countries in Yuan than the dollar will decrease its worth and market value at least. The US impose sanctions on European companies to do trade with Iran and other oil producing countries but reciprocally the European countries give intimidation to boycott the US  dollar. In addition, Russia would play vital role as recreationist and would give Red carpet to all. This downfall of dollar will make crash in World Bank and IMF also. Chinese government this step would create a greatest tension for the US and dollar.

China should do check and balance regarding the US companies in China. China’s state-dominated and heavily regulated authorities could disrupt the US companies by withholding licenses or launching tax, anti-monopoly or other investigations. Chinese controlled media should play vital role. The state-controlled media have encouraged consumer boycotts against Japanese, South Korean and other international products Last year, Beijing destroyed Korean retailer Lotte’s business in China after the company sold land in South Korea to the Seoul government for an anti-missile system opposed by Chinese leaders. Beijing closed most of Lotte’s 99 supermarkets and other outlets in China. Seoul and Beijing later mended their relations but Lotte gave up and sold its China operations.

To counter Trump’s “America First” approach, Beijing can appeal for support to US allies and other countries. Trump’s unilateral actions have allowed China to position itself as a defender of free trade despite its status as the most-closed major economy. That could help Beijing win over governments that have criticized Trump for acting outside the World Trade Organization. Chinese leaders have tried – so far without a major success – to recruit European and other governments as allies. More broadly, Chinese commentators have suggested Beijing also could disrupt diplomatic work over North Korea’s nuclear and missile programmes or other initiatives. But political analysts say that would risk setting back work Chinese leaders see as a priority.

In concluding remarks, No country can hope to impose tariffs without affecting its own trade and industry as well as economic interests in this contemporary world. Apart from disadvantage, countries that rely on foreign imports can be disturbed due to higher prices for goods, tariffs and supply chain of producers. So both the competitors of this globalized world, the US and China, are doing no good to their own economic fortunes by engaging in this tit-for-tat tariff battle after blamed each other for the ongoing trade warfare. According to the US Federal Reserve meeting the economic uncertainty, decline of private investment and delay of investment plans have been happened due to this trade war. Besides this, the economic giant China will also be equally affected. This current trade confrontation between the US and China also threatens the rules-based global trade order. It could also isolate the US, which has refused to settle differences through serious mediations, negotiations. If global trade tensions continue to simmer, it may not be too long before countries resort to other destructive measures such as devaluing their currencies to support domestic exporters. The world economy, which is on a slow path to recovery, can do without such unnecessary shocks.

PhD Student of the School of Politics and International Studies, Central China Normal University 152, Luoyu Road, Wuhan, Hubei, People’s Republic of China 430079

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East Asia

Kissinger Again Warns US, China Heading for Armageddon-like Clash

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image credit: John Harris/U.S. Navy/Flickr

Last week, Henry Kissinger again warned US-China tensions are a threat to the entire world and could lead to Armageddon-like clash between the world’s two military and technology giants. Surprisingly, some Chinese are interpreting it as a threat to intimidate China in order to “accept and obey” the US-led world hegemonic order.

***

In January 2015, the peace group CODEPINK dangled a pair of handcuffs in front of the then 91-year old former Secretary of State Henry Kissinger at a Senate hearing. Twelve months later, at the February Democratic Debate Bernie Sanders and Hilary Clinton were seen engaged in a heated duel attacking and defending the acclaimed diplomat respectively. The late writer Christopher Hitchens in his book The Trial of Henry Kissinger warned editors, TV news channel producers and presidential candidates to stop soliciting Kissinger’s “worthless and dangerous” opinions. The never ending outburst of enmity on the part of CODEPINK, Sanders and Hitchens was due to Kissinger’s role in the brutal killings of thousands of civilians, gang rape of hundreds of female detainees, and alleged slaughtering of over one million people in Vietnam, Cambodia and Laos among countless similar crimes against humanity since the early 1970s. 

As documented in “Kissinger and Chile: The Declassified Record,” as some 5,000 people were being detained and tortured in Chile’s National Stadium, Kissinger told the ruthless Augusto Pinochet: “You did a great service to the West in overthrowing Allende.” But Sanders-Clinton “spirited exchange” five years ago, as mentioned above, was not confined in Sanders’ words to Kissinger being “one of the most destructive secretaries of state in the modern history” of the United States. Sanders’ rare outburst also included Clinton defending her foreign policy mentor – Kissinger – on China. “[Kissinger’s] opening up China and his ongoing relationship with the leaders of China is an incredibly useful relationship for the United States of America,” Hilary Clinton emphatically pointed out.

Sanders responded disdainfully and berated Clinton for admiring Kissinger. “Kissinger first scared Americans about communist China and then opened up trade so US corporations could dump American workers and hire exploited and repressed Chinese,” Sanders had retorted. On the contrary, no one in Beijing either knows or seems interested in the so-called negative traits attributed to the veteran diplomat who is generally known as the most “influential figure in the making of American foreign policy since the end of World War II.” As according to Peter Lee, editor of the online China Matters and a veteran Asia Times columnist, the CPC leadership value Kissinger as the “symbol, custodian and advocate” of a US-China relationship that is special.    

Professor Aaron Friedberg, author of A Contest for Supremacy: China, America, and the Struggle for Mastery in Asia, described the re-opening of relations with China as Kissinger’s greatest achievement. In a review of Kissinger’s massive book On China, Friedberg wrote: “Kissinger’s six hundred pages on China are an attempt to apply the principles of foreign policy realism to the most pressing strategic challenge of our day.” (Emphasis given) However, the approach, taken alone, was far from adequate in anticipating the behavior of an increasingly powerful China on the one hand, and for prescribing an appropriate American strategy to deal with a rising China on the other, Friedberg went on to add.

Since Mao, all successive top Chinese leaders have met with Kissinger one-on-one in Beijing, some even more than once. China’s current President Xi Jinping is no exception. In fact, given the deep esteem with which reform era CPC leadership has been embracing Henry Kissinger, the general wisdom in Beijing is President Xi has horned his diplomatic skills by learning well his (Kissinger’s) oft-quoted aphorism “you don’t go into negotiations unless your chances of success are 85 percent.” Kissinger had first met with Xi in 2007, when Xi, as the party secretary in Shanghai, had received the most frequent foreign visitor to China on a visit to the city. When asked for his assessment of the party’s new general secretary within days of the 18th party congress in November 2012 by the Wall Street Journal, Kissinger had said “Xi Jinping is a strong leader capable of rising up to any challenge.”

In the past four decades of Kissinger-CPC bonhomie, the first decade thanks to Cold War passed off rather smoothly and uneventfully. The second decade ushered in with perhaps the first most serious test for both Kissinger as well as for the US-China relations since the unfreezing of the bilateral ties by Nixon-Kissinger pair in the early 1970s. In June 1989, the CPC rulers used brutal force to crush peaceful student demonstrators at the Tiananmen Square and launched nationwide crackdown on suspected dissidents. Though criticized by the US political elite for “Kowtowing to Beijing” for defending the CPC authorities by saying “a crackdown was inevitable,” Kissinger did influence the Bush administration in imposing comparatively mild sanctions while deflecting congressional pressure for tougher action.

In third and fourth decades respectively, unlike during the first two stages, ideology gradually regained initiative over geopolitics in influencing the bilateral relationship. There are mainly two factors for this. First, from 1979 to the end of the last century, China was relatively weaker than the United States both economically and in military technology. Following China’s rapid economic growth beginning late 1990s and at the turn of the twenty-first century, a section in the US political elite became apprehensive of China’s assertive and highly competitive stance. These concerns soon gave birth to the “China threat theory” which Beijing unsuccessfully tried to pass off as “China’s peaceful rise.”

The second factor has much to do with the world financial crisis in 2008 which resulted in the beginning of decline of the US economy on the one hand, and the unfolding of the seemingly evident intent of the CPC leadership to “eventually displace the US” and “re-establishing their own country as the pre-eminent power in East Asia.” In other words, with Cold War and the Soviet Union both long gone, and China perceived as threatening to soon replace America as the world’s number one economy, the communist rulers in Beijing were under no illusion that the ideologically hostile US was plotting “color revolution” to replace the CPC with democratically elected leaders in the People’s Republic.

The chilling of US-China bilateral relations during the first year of Obama presidency itself, with China replacing Japan to become the world’s second largest economy in 2010 and further hardening of the US stance towards China, and finally the US “pivot to Asia” strategy introduced by the Secretary of State Hilary Clinton – all these were perceived by Beijing as the US “creating political framework for a confrontation with China in order to maintain the global hegemony of American dominance.” Even Kissinger was very much aware of the changing stance in Beijing, as is reflected from what he wrote in On China: “China would try to push American power as far away from its borders as it could, circumscribe the scope of American naval power, and reduce America’s weight in international diplomacy.”

Interestingly, although the most frequent US visitor to China has continued to visit China ever more frequently during the past decade, given the changing nature of polity in both the US and in China – especially the increasing “rivalry” under the Trump administration, it is not incorrect to conclude the Kissinger magic has gradually faded away from the bilateral relationship. It is least surprising therefore last Friday, when the “old friend of China” warned both Beijing and Washington in a speech at McCain Institute’s Sedona Forum in France, that their escalating tensions were leading the world towards Armageddon-like clash, the opinionated, vocal Chinese social media reacted with caution. “Kissinger used the so-called end of the world argument to threaten and intimidate China in order to accept and obey the hegemonic order by the United States,” a blogger responded.  

A commentary in Chinese last week pointed out, ever since Trump launched “all out political war” against China, Kissinger has been in subtle and cunning way warning China to “cooperate” with Washington. The signed article entitled “Kissinger Continues to Scare the Chinese People” stated: “For the past two years or more, Kissinger has been repeatedly saying China must continue to compromise and obey the US hegemony and US-led global order. Otherwise, China will face the danger of World War I-like situation.”

To sum up, while calling Kissinger’s veiled threat a bluff, a reader posted in the chat room of guancha.cn – one of China’s most widely read online Chinese language news platform: the old man is a veteran who, more than anyone in China, has interacted with most number of China’s founding leaders. It is therefore his responsibility to explain to the world why most American politicians have failed to co-evolve with China’s leaders, Chinese government and with Chinese people? Why has America relentlessly carried on slandering China? Why America has been consistently accusing, vilifying and provoking China? Mr. Kissinger, please answer. Thank you.”

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Post COVID-19, Can China Emerge as the New Global Power?

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China Beijing

Authors:Makam Khan Daim and Mohammed Seid Ahmed*

There are many unknowns about the virus and that makes it incredibly challenging for every government to wage war against the common enemy. The politically divided United States was not ready for a crisis like such and is already going through a deep political division that is deviating the superpower’s attention from leading the world. The United has already left multiple multilateral agreements and organizations that it helped create in the first place Trump administration was running the nation without any clear policy goals. Trump’s administration was retreating from world leadership but at the same time reluctant to give up its position as a global superpower. Though the policies of the administration are pulling the US back from years of progress as a global leader. As the world waits for the US leadership in the outbreak of the virus, the administration and supporters downplayed the harsh nature of the virus. The repercussions of failing to contain the virus at an early stage have put the US as the leader in infections and death toll above all the affected countries around the world.

The previous US administration chose to engage in a war of words with China rather than undertakin­g measures to contain the virus at home and be an example to the world. On the other hand, the Asian nations have taken “draconian” measures in the American eyes but were successful in containing the virus more than any country in the world. China’s has 102,517 cases with 4846 death, the numbers might be disputable for some, however, figures from democratic countries like South Korea and Japan revealed that the Asian nation has successfully contained the spread of the virus. As of  May 2nd, 2021, Japan has 82, 425 with just 1493 deaths, Korea has 123,240 cases with just 1833 deaths according to the latest data compiled by the John Hopkins University of Medicine, coronavirus task force. The US on the other hand, in the same timeframe, has registered a staggering 32,392,667infection cases and 576,722 deaths. Although Chinese figures are disputable the recent reopening of all cities and provinces, indicates that the virus is contained, and things are going back to normalcy.

Power is shifting to the East as many political scientists predicted and China as an Asian superpower is in the final stage of preparations to take the role of global leadership. India is the other Asian nation that can contest China, but India’s domestic issues, its relatively weaker economy, and the ever-growing population have been a challenge for the subcontinent to be a serious contestant for China’s activities in a global scale. In fighting this pandemic, the US has missed another opportunity to lead the world and take responsibility as a superpower. The administration’s adherence to the outdated protectionist policies, that is harming American workers, let alone leading the world in the fight against COVID-19, Trump’s denial of the reality and his enablers within the government put the nation in harm’s way and has culminated in the death of thousands of Americans.

New Zealand has come out of the battle against COVID-19 as a winner with its early lockdown and strict measures with the extraordinary leadership of Prime Minister Jacinda Arden and her administration. The European nations Italy, Spain, France, and Germany that have been hit hard with the virus are getting a sigh of relief after their worst at the beginning of the outbreak. Their large size aging population have become the victim of the virus, with a series of lockdown and extreme measures they have finally managed to mitigate the likelihood of more deaths related to the virus. Africa to the surprise of lots of people is the last continent that has started to see new cases. Africa’s young population under the age of 35 that makes up over 60 percent of the continent’s population could have worked in favor of Africans because of the viruses’ nature to attack mostly immune compromised and aged population. Nonetheless, the recent increase in testing for instance in Ethiopia is revealing hundreds of cases every day. Now, Ethiopia is reporting 258,062, with just 3709 deaths related to the virus. South Africa and Egypt are among the worst hit countries from Africa, in which the former has reported 1,582,842 cases and 54406 deaths, and the latter reported 228,548 cases with over 43,402 deaths respectively. Although, the death of a single person is painful, with all the indications and data available Africa is surviving this outbreak with fewer casualties. If whether this could be attributed to the nature of the virus or African government’s measures is remained to be seen in further researches and reports in the foreseeable future.       

The problems that Africa could face if the infection rate increases drastically are dire, given the continent’s record in poor healthcare infrastructure, scarce of ventilators, hospital beds, small size healthcare professionals in relative to the population size. Developed countries with advanced technology and healthcare system in place have not been able to cope up with the patients’ demand and has been extremely challenging for the government and professionals to fight the virus. It is no brainer the challenges that Africans could face without the infrastructure. Nonetheless, while all the traditional global powers closed their doors and were fighting the pandemic, there is one rising superpower who has emerged to play the global leadership role in the fight with the virus.  China has emerged not only as the hotbed for the virus but as a global power who is using the pandemic to project its soft power around the globe and play the role of the so-called “responsible power”. 

In conclusion, China would be the winner in this epidemic, because of the measures it took and its quasi-leadership in fighting this pandemic using its soft power. It has already lifted the ban in Wuhan and now things are slowly going back to normal ahead of many other countries, which is beneficial for China to survive the economic fallout. Economists are predicting a global recession following COVID-19, but even if that is the case China will not be the biggest loser, United States, Europe, and the rest of the world are. One thing we all learn from this pandemic is that because of our intertwined interests and living by each other there is nothing that the world could achieve today without the cooperation and collective actions. Time will answer the question that will the United States take the lesson, embrace multilateralism again, and get back to lead?

*Mohammed Seid Ahmed, Freelancer(M.Phil International Relations at Zhejiang University, currently based in California, the US)Mohemmed can be reached at mahmedseid89[at]outlook.com

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China aims to be a major player in the “celestial domain-space”

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Image credit: Xinhua News Agency

Authors: Gao Tian-ya and Wang Li

Finally after seven-decade of earnest struggle, China on April 29 successfully sent into space the core module of its space station, starting a series of key launch missions that aim to complete the construction of the station by the end of 2022.It was reported that the core module, named Tianhe in Chinese referring to “Celestial River”, was carried into space by a new-type carrier rocket launched from one of the key Spacecraft Launch Sites located in south China’s Hainan Province, overlooking the South China Sea. Technically speaking, the core module separated off the carrier rocket 494 seconds later and entered its planned orbit swiftly. Then as scheduled precisely, its two solar array wings started functioning after smoothly unfolding, signifying a complete success of the launch.

In the wake of the successful launch of the Tianhe core module which is the largest spacecraft China has ever developed, Chinese President Xi Jinping extended warm congratulations and sincere greetings to all staffs who participated in the mission. The construction of the space station and a state-level space lab are the key goals to fulfill the three strategic steps in China’s crewed space program and a leading project for building China’s strength in science, technology and aerospace. Xi added that the construction of China’s space station enters into the full implementation stage, which lays down a solid foundation for subsequent tasks. It is self-evident that after persistent struggle for seven decades, now China is determined to continue moving forward to be one of the most advanced countries in the celestial domain—space.

Many people of the world have been curious in taking an inquiry in why China, which is still a developing country with 1.4 billion people, has consistently and resolutely allocated huge amount of its rare financial and technological resources to its well-known national projects of “Two Bombs (nuclear & hydrogen) and One Satellite (manned space program)” which has finalized the great power status” for China on the world stage. Perhaps, the most concise answer should be that “to complete national rejuvenation by the mid-21st century as China’s political mission and people’s aspiration.”To that end, Chinese leadership since the mid-1950s has been dedicated to this mission. Now after countless trials and tests, the construction of the space station and a state-level space lab is perfectly completed. For sure, as one of China’s most complicated space missions so far, the space station features a construction project that requires 11 launches in 2021-2022, including this launch of the core module, two more module launches, four manned missions and four cargo vessel flights.

Chronologically and technologically, China’s three-step manned space program can be defined into the first step in 1992 when the world media witnessed Yang Liwei, as China’s first astronaut, was sent into space and returned to Earth safely. It’s a substantial leap in terms of space exploration and then followed by another launch in 2005 in order to fulfill the mission. The second step was conducted in the 2010s in a series of testing key technologies needed for a permanent space station, including extra-vehicular activity, orbital docking, and in-orbit propellant refueling. The final (third) step is to assemble and operate a permanent crewed space station by 2022, which will mark a new high in China’s space technology. According to Bai Linhou, deputy chief designer of the space station at the China Academy of Space Technology (CAST), “the station could support at most six astronauts at the same time. Regular launches of crewed and cargo spaceships will secure a long-term manned presence to carry out in-orbit research and services.” It is sure that such a large facility will provide many opportunities for scientific research and technological experiments with a view to understanding of the universe and promoting the development in science, technology and applications concerned.

Even though the great achievements made by China over the past decades, how can it advance towards one of the major players in the space program given the long-term experiences and complete technologies of the United States, Europe, Japan and particularly Russia which has been the leading power in the space field since later the 1950s? To deal with this concern, it is necessary to be aware of three points as follows.

First is the domestic capabilities of China. It is very clear that the Tianhe core module is the largest and most complicated spacecraft independently developed by China. It can support astronauts carrying out different scientific and technical experiments in space in all terms. As the key basis, the next two more modules will be assembled later in orbit to form the complete Chinese space station. What this launch and previously numerous launches of the space missions have approved China’s capabilities and potentials to further advance its space program.In effect, China is also pushing forward its lunar exploration of small celestial bodies, referring to the mission’s scientific objectives such as probing the surface composition, internal structure and other features of the two targets, and also detecting possible water and organics on the comet and studying the formulation and evolution of the solar system.

Second is the cooperation between China and Russia. From the very beginning of the 1950s, China’s space program has been benefitted by cooperation with the former Soviet Union and Europe. Given this, China National Space Administration has invited scientists around the world to participate in the space program, and several countries such as France, Sweden, Italy and particularly Russia have revealed their interests. More impressive is the the announcement that China and Russia has decided to jointly construct a space station on the moon. It is believed that the planned Sino-Russian lunar research base is a microcosm for larger geopolitical moves because the two Eurasian powers aim to change the US-led unipolar world order. As an U.S. expert in space science observed that a lunar research station on the moon jointly run by China and Russia will present America with a challenge it likely cannot pass up this 21stcentury race to the moon.

What Washington really worries is that Moscow—Beijing joint Sputnik program would dent America’s reputation as the world’s leading technological power. In so doing, it could also give both powers an advantage in what some see as an inevitable race for the Moon’s resources. Back on Earth, Sino-Russian station would also further cement what their leaders have described as the high-level strategic partnership. Due to this, it is better for the U.S. to reconsider international collaborations in scientific discoveries in space. Historically, it is during the Cold War that the U.S. and the Soviet Union negotiated the bedrock of international space law. Today, however, our actions in space are mirroring our divisions on Earth. While the U.S. charts one path alongside it’ partners via the Artemis Accords, the plans to develop a Chinese-Russian International Lunar Research Station continues a burgeoning trend of building an alternative security system, as Graham Allison argued.

In sum, considering the global issues ahead, the international cooperation in the outer space and on the earth as well is one of a few mechanisms which succeed in decreasing tensions in geopolitics, and probably serves as the best example of global cooperation for the good of world community. This is what China has advocated for creating an international community of shared future in which China aims to play a major role in both the celestial domain and on the earth.

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