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How U.S. “de-risking” trick will jeopardize global economy

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11 months ago

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The so-called “de-risking” is, in essence, “de-sinicization” and “reversing globalization.”

The international community has issued stern warnings over the global risks caused by the “de-risking” rhetoric.

BEIJING, June 3 (Xinhua) — Despite its much hyped rhetoric of the so-called “looking to de-risk and diversify,” the United States has in deed hastened its scheme to “decouple from China.”

Now by roping in more allies, Washington seeks to forge a parallel system to shut China out from such fields as global economy and trade, as well as advanced technology.

Designed to hoodwink the world into the ostensible purpose of “de-risking,” Washington’s scheme may well incur enormous risks to the deeply-integrated global economy and supply chains, spurring further division and untended losses across the world.

Following the Group of Seven (G7) summit in Hiroshima, Japan, the United States convened a so-called “Indo-Pacific Economic Framework (IPEF)” ministerial meeting on May 27, calling on trade ministers of 14 countries to form a council to coordinate supply chain activities and a so-called “Crisis Response Network” to give early warnings to “IPEF” countries of potential supply disruptions.

Four days later, the U.S.-EU Trade and Technology Council (TTC) held its fourth ministerial meeting, in which America and the EU agreed to enhance collaboration “to address non-market policies, practices, and economic coercion.”

The United States, through these multilateral meetings, attempted to frame China as posing the alleged “potential risks,” so as to “de-risk” and in actuality contain China.

The so-called strategy of “de-risking,” as the Foreign Affairs magazine pointed out, aims to achieve three broad goals to contain China — limiting China’s abilities in strategic sectors that have national security implications, such as cutting-edge semiconductors and other advanced technologies; reducing Beijing’s leverage over the West by eroding Chinese dominance of the market for certain essential inputs, including critical minerals; and restricting the influence of the Chinese market in the world. The essence of “de-risking” is to create “a small yard with high fences” targeting China and make a more refined attempt to “decouple economies or sever supply chains,” with the aim of excluding and suppressing China.

The international community has issued stern warnings over the global risks caused by the “de-risking” rhetoric. Singaporean Deputy Prime Minister Lawrence Wong has pointed out that “de-risking” instead of “decoupling” from China will also lead to a more fragmented and “decoupled” world economy, arguing that a fragmented global economy would split the world into mutually competing regional blocs, and there would be less trade, investment and the spread of ideas, all of which are key to the world’s economic progress.

So, is it actually feasible for the United States to promote “de-sinicization” in the name of “de-risking”? The answer is definitely no. There are at least three hurdles that the United States can hardly overcome.

First, it’s hard to change the mutually beneficial market structure for Chinese and U.S. companies. After all, it’s their nature for companies to pursue profits, and they will not blindly follow government orders that run against market rules. Second, for consumers, the absence of “Made in China” products would mean higher prices and more severe inflation. Finally, while Washington schemes to instigate allies to contain China together, it is not in the interest of most countries, including European nations, to do so and the costs would be extremely high.

The so-called “de-risking” is, in essence, “de-sinicization” and “reversing globalization.”

China is the world’s second-largest economy, a major trading partner of more than 140 countries and regions, and the largest manufacturing country. The world cannot do without China. Ignoring such reality, the United States has been coercing other countries into taking sides, which not only seriously disrupts the global market, but also threatens the stability of the global production and supply chain.

Besides, as China has developed ever-closer economic ties with the rest of the world, the cost of “de-risking” or “decoupling” from China is actually far greater than some countries can expect and afford. More importantly, for much of the world, China is not a risk but a source of opportunities.

Over the past four decades of reform and opening-up, China has accumulated huge advantages in infrastructure, market size, talent pool and industrial clusters. China has been a magnet for global commercial forces.

During his China visit in late May, Tesla’s founder Elon Musk praised the country’s vitality and potential, voiced confidence in the Chinese market, and expressed his willingness to deepen cooperation.

Echoing Musk, other international business tycoons like Jamie Dimon, chairman and CEO of JPMorgan Chase, and Laxman Narasimhan, new global CEO of the U.S. coffee giant Starbucks, have also expressed their hopes of expanding business in the world’s second-largest economy.

Under no circumstances could crafty word games, employed by Washington’s China hawks, serve to break market rules, cut industrial links, or block exchanges between China and other countries, let alone impede China’s peaceful development. Any attempt to alienate China from the rest of the world is fated to come to naught.

Source(s): Xinhua

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Talks between Israel, Egyptian delegation over Gaza ceasefire reportedly ‘very good’

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2 days ago

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27/04/2024

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Negotiations over Israel’s upcoming offensive in the Gaza Strip’s southernmost city of Rafah and efforts to achieve a ceasefire deal with Hamas were “very good” between Israeli officials and a high-level Egyptian delegation, media and sources said Friday.

The negotiations were “very good, focused, held in good spirits and progressed in all parameters,” a senior Israeli official told Israeli media Ynet.

“In the background, there are very serious intentions from Israel to move ahead in Rafah,” and the Egyptians are willing to exert pressure on Hamas to achieve a deal, the official was quoted as saying.

According to the Israeli official, Israel made a warning that it would not agree to foot-dragging by Hamas on the hostage deal to delay the military operation in Rafah, and he also mentioned that Israel had deployed reserve soldiers to the Gaza Strip.

According to Channel 12, the official added that Israel is prepared to make more “significant compromises,” such as permitting the evacuation of Gazan civilians in northern Gaza and removing its troops from a crucial corridor that divides Gaza.

Meanwhile, Egypt reportedly sent a high-level delegation, led by senior intelligence official Abbas Kamel, to Israel on Friday with the hope of brokering a ceasefire agreement with Hamas in Gaza.

Considerable progress has been achieved in bringing the views of the Egyptian and Israeli delegations closer together regarding reaching a truce in Gaza, Egypt’s Al-Qahera News TV reported.

In addition, two high-ranking Egyptian security officials confirmed to Xinhua news agency that the talks discussed Egypt’s “rescue initiative,” which aims to prevent any more escalations in the Strip and avoid the invasion of Rafah.

On Thursday, Israeli media reported that the country is expected to “soon” begin evacuating civilians from Rafah ahead of a planned ground attack.

Earlier Thursday, Israel’s wartime cabinet and security cabinet convened to discuss a possible assault on Rafah, a city previously considered a “safe zone” from the relentless Israeli bombardments, where about 1.4 million displaced Palestinians have found refuge.

Source(s): CGTN

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Wang Yi says China supports reconciliation among Palestinian factions

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3 days ago

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26/04/2024

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Chinese Foreign Minister Wang Yi said China supports internal reconciliation among different factions of Palestine through dialogue, in a written interview with Al Jazeera Media Network published on Thursday.

The interview covers questions ranging from the Gaza crisis and the Russia-Ukraine conflict to the Taiwan question and China-U.S. relations.

As for the ongoing Gaza conflict, Wang said China will continue to strengthen solidarity and cooperation with Middle East countries and the whole international community to support the just cause of the Palestinian people in restoring their legitimate national rights.

China also supports Palestine’s full membership in the United Nations at an early date and supports establishing the independent State of Palestine and realizing “the Palestinians governing Palestine,” Wang said.

“We call for a more broad-based, more authoritative and more effective international peace conference to set a timetable and a road map for the two-state solution, to promote comprehensive, just and lasting settlement of the Palestinian question, and to ultimately realize peaceful coexistence between Israel and Palestine as well as harmony between the Arab and Jewish peoples,” he said.

Wang also said China is deeply concerned about the rising tensions in the Red Sea. “For quite some time, rising tensions in the Red Sea have affected important interests of regional countries, especially the littoral states. They have also heightened the overall security risk of the region and weighed on the global economic recovery.”

“We stand ready to coordinate more closely with regional countries and work together with the international community to continue with our constructive role in restoring peace and stability in the Red Sea at an early date,” Wang added.

In response to the escort mission by the Chinese Navy in the Gulf of Aden and the waters off Somalia, Wang said the mission is not related to the Red Sea situation but authorized by the UN Security Council.

Speaking of the Ukraine crisis, Wang said China’s position on the Ukraine crisis is consistent, unequivocal and transparent, while elaborating on China’s efforts to promote a ceasefire and end the fighting.

“We will work with all parties constructively to promote political settlement of the crisis, and contribute more to regional tranquility and security and enduring world peace,” said the Chinese foreign minister.

In the interview, Wang once again said Taiwan has been an inseparable part of China since ancient times, and the Taiwan question is entirely China’s internal affair.

“We will strive for peaceful reunification with the utmost effort and greatest sincerity. In the meantime, our bottom line is also clear: we will absolutely not allow anyone to separate Taiwan from China in any way,” Wang said.

Answering questions about how China sees the U.S. election and the prospects of China-U.S. relations, Wang said the U.S. election is an internal affair of the United States, and China never interferes in the internal affairs of other countries.

“The China-U.S. relationship cannot go back to its past. But it should, and can fully, have a bright future. China is ready to work with the United States to carry out more win-win cooperation, do more that benefits the whole world, and truly fulfill their respective responsibilities to the international community,” Wang said.

Source(s): CGTN

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Macron warns Europe could die of three challenges

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Published

4 days ago

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25/04/2024

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PARIS, April 25 (Xinhua) — Europe could die of three challenges it faces in security, economy and culture, French President Emmanuel Macron said Thursday in a speech on Europe at Sorbonne University in Paris.

Europe is in a situation of encirclement, pushed by many powers at its borders and sometimes within it, while some “uninhibited, regional powers” are showing their capabilities, he warned in a local live broadcast.

Macron also said that the European economic model as conceived today is no longer sustainable facing competition with the United States and China.

“In our Europe, our values, our culture are threatened,” he added, because Europe is experiencing “the cultural battle, the battle of the imaginary, of narratives, of values, which is increasingly delicate.”

This speech came seven years after his first speech on Europe at the university.

Source(s): Xinhua

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