Emergence of New World Order out of Sino-US clash

The United States of America and China’s relation has many up and down since the outbreak of Taiwan Strait status issue, Whenever, US Navy lifted than China deployed thousands of soldiers to Quemoy and MatruIsland in Taiwan Strait in August 1955.Later,Beijing was threatened with the Atom bomb, to end the agitation against the US. US president Richard Nixon ascribed Taiwan Strait status with China in 1972. Enduring conflict compelled the US to pass “Taiwan relation Act” from the congress on January 1, 1979, to help and maintain the peace, security and stability in western pacific and foreign policy would help to US authority to support on commercial, cultural and other relations between both countries. Therefore, Washington was lobbying to help Taiwan to get observer status at the World Health Organization (WHO) in the 73rd annual world health assembly while failing to maintain the preservation of the cross-strait status quo. Moreover, on retaliation by Chinese president Xi Jinping about Taiwan as under one-China policy to get and capture at any cost before 2050. However, this conflict would carry both superpowers to close any disastrous war.

Meanwhile, US-China Relation Act of 2000granted permission to China on trade. Firstly, the trade tensions were uprisings due to the US trade deficit with China from $273.1 billion in 2010. Therefore, on fulltime high of $295.5 billion in 2011.Preamble,US was malediction to pay $375.2 billion deficit to China in 2017.That imports increased $550 billion annually before imposing tariffs in which the comprehensive economic dialogue was convened in July 2017, on mutual understandings to adjourn$160 billion tariffs on Chinese goods, after the unfair practices of currency and manipulation of 1988 and 2015 Act of USA had compelled to China on massive tariffs.

Moreover, in March 2019, Trump warned most of the countries do not use Huawei and Telecom giant’s equipment in the battle with China for technological supremacy, and 5G works could use the company of spy. Furthermore, Trump administration-imposed tariffs to increase 10 to 25 percent on Chinese goods. The whole scenario compelled to Beijing to sign a trade agreement with Washington. However, the US blamed on currency manipulation through Act of 1988 under section 3004 against an opponent. It is a lengthy history of China to devalue the currency to gain and capture the market of the world. After the devaluation of Yuan as much weaker, which makes more competitive Chinese exports and buying to foreign currencies. Through, in global trade rules, if the competition among the countries on inflation and deflation currency could not evaluate due to get more foreign currencies though reduce capital inflow significantly hits on jobs sector especially in the USA and Europe. People’s Bank of China is under control by the communist party to let Yuan fall below key in 7.0 level against the US dollar and 8.5 percent depreciation from the exchange rate. However, the US department of treasury reported on January 13, 2020, before a great deal in which semiannual report on microeconomic and foreign exchange policies. This report assured about 20 significant partners of the US are involved with China on currency practices. The first trade deal would lead only $200 billion imports of US production and including $32 billion in agricultural. Moreover, $40 billion would be pasteurized through tariffs on Chinese goods at the end of 2021. Indeed, Trump ensured China all tariffs would be removed after signing the “second plan” trade deal.

The US and China’s relations got a new major twist due to COVID-19. After the breakout of the virus, the US president stretches the misinformation about China called “Chinese virus” and “Wuhan virus”. Moreover, the conspiracy theory lies the ideas about escaped from Wuhan lab. On the other side, China blames on US military persons on the carried virus and spilling in China. Therefore, the political battle of China is intense against adversaries, most of Americans about 66% believe virus divulged as the danger of dependency on China all manufacturing products, infect, the US was unaware from the abrupt global pandemic. It revealed the lack of necessary medical supplies and personal protective equipment’s (PPE) as well. The US must keep in mind the new raising for economic nationalism. The trade war between both countries will create uncertainty and global supply chain. Eventually, some business moved out of China like Apple production and the Tesla factory. If US government forced to leave US business from China through executive orders in which reestablish business in the USA to create jobs for Native Americans and secondly, a business must take ensures as a freeway, on its position. China is the first victim of the virus and reopening with $45 billion more attractive worth of markets. At the same time, senior US officials are proposing a plan to make China responsible for this virus and proposals are prepared to compensate that virus effects that economy of the world.

Furthermore, US state agencies convened a meeting on May 7, 2020, to begin mapping out a strategy as reflationary measurement against China, the whole meeting and planning put out on vanquish or anonymity because they were not authorized to reveal the planning. Trump and some expert have discussed to strip “sovereign immunity” of China. However, legal expert says it would not be easy to put back China even pass the congressional legislation which is extremely difficult for accomplishing and secondly, senior officer advice to Trump to cancel the debt obtain to China or to pay back $1200 billion amount with no interest and to consider levy extreme. Lastly, Trumps thinks about to increase one trillion-dollar tariff on Chinese imports due to damage to US cost. Similarly, coronavirus has killed 106000 Americans with loss of 28 million jobs. However, companies, corporation, oil companies became bankrupt and lost more than $700 billion since the outbreak of COVID-19 that would never easy to let the US boast up the economy after any solution about the virus.

China modernized maritime PLA Navy for the context of the new war. Moreover, this whole region relies on primary of American military presence on different offshores of countries to contain any immediate response from China and allies after intensifying the naval gape would lead the geopolitical competition US commentators towards south Asia. Last three weeks before Washington post published the secret report of CIA “The war with China would lead the major disastrous for the USA” And major superpowers would lead the US capital losses. Therefore, all bases of US in Indo-pacific command region would be at risk, especially US territory Guan might be the first concern. The primary issue of both superpowers on Taiwan Strait land. After pandemic ravaged in the world. Furthermore, the escalation was erupted last month to push back on the major war that would erupt a nuclear war. After publishing the report, the vast difference had been seen between Trump administration and US establishment.

On the other hand, Trump claims super-duper missiles. Moreover, the US wants to test nuclear bomb to deterrence against China. Besides, China is acknowledged throughout the world on economic hegemony. Lastly, after the end of pandemic US will lose her hegemony from the Middle East, South Asia because US pullout all forces from NATO on any stage in recent future, so Trump already withdraw from WHO. Moreover, Black African American George Floyd murder took a new great agitation against white supremacy. However, all about that weaken and isolate the US from rest of world which is beginning of the downfall of the US that could be enduring so on China will take a better position to change new world order on an economic basis.

Abbas Ali Bughio
Abbas Ali Bughio
The writer has passed M.Sc. from National Institute of Pakistan Studies (NIPS), Quaid-i-Azam University Islamabad.