‘Trump’s Armistice Demands: the trade war against China has entered fever pitch’. This article is from Eddie Cheong, translation of an article from the Global Times written in Chinese, August 2020
The White House has announced that if China wants to cease the trade war, she must meet the following 4 demands from the US government:
- China must reduce its trade surplus with the US by US$100 billion within one year.
- China must open up its financial and e-commerce markets to the United States.
- China is not allowed to trade in the world markets for technology.
- Chinese Government subsidiaries are not allowed to engage in industry policies, specifically referring to the prohibition of “Made in China 2025”.
The United States is trying to force China into signing an unequal treaty reminiscent of the Opium Wars.
These 4 demands provide the reader with a clear view of the diabolical intentions of the United States and is a conspiracy aimed at attacking China’s sovereignty.
(1) A reduction of 100 billion US dollars a year
In the past 20 years, American senior officials have been embarking on a scheme to force the appreciation of the Chinese renminbi. The appreciation of the yuan means two things:
a) more than USD 1 trillion that the United States owes China will automatically be devalued;
b) the price of Chinese exports will become uncompetitive and Chinese factories will be be deprived of a viable market bearing in mind that import and export trade accounts for almost 40% of China’s GDP.
By forcing the appreciation of the renminbi, the US is aiming to destroy China’s export trade, and in turn hitting China’s GDP. That was how Japan’s economy was brought to its knees by the United States.
In 1980, Japan after its rapid development, became the world’s largest industrial exporter.
In terms of time frame, China is now Japan at that time.
In the United States, 60% of industrial products were supplied by Japan; 3 out of 5 cars running on the streets were produced in Japan; among the top 20 mergers and acquisitions in 1985-1989, 17 of them were acquisitions by Japanese companies.
The United States then demanded Japan to open its markets. By 1985, the United States and the top 4 European countries compelled Japan to sign the “Plaza Agreement”. The yen was forced to appreciate, and Japan’s foreign exchange reserves immediately evaporated by tens of billions of dollars.
Worse still, the appreciation of the yen caused a fatal blow to the Japanese export industry. A large number of Japanese companies went bankrupt. From 1990 to 1996, the the number of Japanese company bankruptcies averaged 14,000 each year. With the huge and growing number of companies going bust, the Japanese economy collapsed, and unemployment soared by millions. It became so miserable that suicide rates increased dramatically. Aokigahara, known as “the Suicide Forest” in Japan, peaked with more than 2,000 suicides in the early 1990s.
From the day the Sino-US trade war started, the former Japanese Prime Minister Yasuo Fukuda did not forget to warn China about the Japanese tragedy on the “People’s Daily” newspaper.
China must learn from Japan’s grave mistake; to beware and stay vigilant against the US Government’s sinister designs.
(2). Opening up the financial and e-commerce market
This demand by the US Government focuses on finance, and the United States intends serious harm to Chinese investors and their savings.
Once the Chinese stock market is forced open, trillions of US$ hot from the Fed’s 24/7 printing presses will undoubtedly overwhelm the Chinese stock markets. Tens of millions of unsophisticated Chinese stock investors will become cannon fodder of Wall Street wolves, and the Chinese stock market will be completely in the hands of Wall Street.
So the United States wants to force China to open its financial market to Wall Street’s wanton predators? To put it bluntly, it is a ploy to “legally” rob and plunder the Chinese peoples’ life savings and investments.
(3) The Chinese market is not allowed to exchange technology. Government subsidiaries are not allowed to engage in industry policies
Throughout the trade war, the United States is targeting “Made in China 2025”.
The “Made in China 2025″ initiative is China’s national blueprint to further develop it’s manufacturing sector. China aims to move away from being merely the “world’s factory” producing cheap, low-tech goods. The plan encourages production of high tech value products and services, like aerospace, semiconductors and biotech, to help achieve independence from foreign suppliers.
Each and every country has the right to strive and be free from being reliant on foreign imports, but Trump and his administration somehow believe it has a greater right to force others to remain permanently bound and dependent on Uncle Sam or else, be perceived and sanctioned for being a threat to United States’s global hegemony and supremacy.
The 4 demands by the United States is an unequal treaty that harks back to the days of the Opium Wars when China was derisively referred to as “the Sick Man of East Asia”. They amount to naked threats aimed at China.
In particular, the 4th demand is like stepping on the face of China and threatening: “You Chinese are only permitted to make clothes, shoes and toys and forever remain a sweatshop of cheap European and American products!”
In this trade war, the United States thinks that China can be easily coerced and subdued. The world did not expect China to stand up against thugs and bullies such as Trump, Pompous and the rest of the WH gang.
Every Chinese should understand that this trade conflict is not just a trade friction, but a war pursued by America the Global Hegemon to undermine China and to bring the Chinese people to their knees.
We held our heads up to face the difficult years in the past. China today is the strongest military power in the Eastern Hemisphere with the strongest war mobilization capability in the world. Why should China fear or bow her head to bullies when she is quite capable of defending herself?