Foreign experts: Changing the soup without changing the dressing will only attract risk control | Risk | Foreign experts
For a period of time, more and more American politicians have stopped hyping up "decoupling" and instead promoted "de risk". American experts recently stated in an interview with China Daily that this move by the United States can be described as a change of course and will only incur risks.
The United States changes soup but not dressing
Jack Midley, head of global consulting firm Midgley&Co, told China Daily, "These two terms are actually exactly the same... 'de risk' is not a new term, it is a common term in the financial services industry. For example, when a bank decides to stop doing business with a certain type of customer to avoid money laundering or other penalties, it can be called 'de risk'."
According to data released earlier this year by the US Department of Commerce, the total amount of goods imported from China by the US reached $536.8 billion in 2022, and US exports to China increased by 1.6% to $153.8 billion.
Midley analyzed that China US trade is an important component of the US economy, and this is also true for the Chinese economy. The idea of decoupling the economies of the two countries is simply unbelievable.
He further pointed out that no one believed that China and the United States would "decouple", so the United States turned to hype up "de risk", which is essentially no difference between the two.
"Risk reduction" incurs risks
Midley's analysis points out that when the United States wants to promote "risk reduction", they will implement export controls or impose tariffs. The US Department of Commerce imposes export controls and even sanctions on technologies that help improve decision-making speed or accuracy, covering almost all information technology, computing technology, and analytical technology.
"This is the American concept of 'risk-free'... it means that the US government can take any action to restrict trade with China," said Midley.
The Chinese side is well versed in the tactics of the US side. In June, Yang Tao, Director General of the US Department of the Ministry of Foreign Affairs, pointed out that no matter how it is packaged, the US's "risk reduction" is still "decoupling and chain breaking", which is essentially "de sinicization". Ultimately, it is to remove opportunities, cooperation, stability, and development. Not only does it fail to solve the US's own problems, but it will also backfire on itself and drag down the world.
In fact, "risk reduction" is not a consensus in the international community. Aisia Garcia Erero, Chief Economist of the Asia Pacific region at the French Foreign Trade Bank, recently pointed out at an event held by the Atlantic Council, a US think tank, that it is very dangerous to hold a unified and singular view of China due to the different demands of Europe and America, as such views may be incorrect.
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