The United States Brings More Risks to the World through Risk Reduction Economy | China | United States
As agreed by both China and the United States, US Treasury Secretary Yellen will visit China from July 6th to 9th. The relevant person in charge of the Chinese Ministry of Finance responded to media inquiries regarding Yellen's visit to China, emphasizing that the essence of China US economic and trade relations is mutual benefit and win-win, and there are no winners in trade wars or "decoupling and chain breaking".
For a period of time, the United States has been vigorously promoting "decoupling and chain breaking", promoting so-called "friendly shore outsourcing" and "nearshore outsourcing", and seeking to "de Sinicize" the supply chain. These actions artificially sever the global industrial and supply chains, seriously undermine market rules and international economic and trade order, and have been widely criticized by the international community. According to a report from the German Institute of Economics, the US approach poses a threat of "deindustrialization" to Germany. Gabriel Barbo, director of the Development Research Center, an Argentine think tank, believes that the United States is accustomed to using its global hegemonic position to gain benefits, disregarding its influence on the interests of other countries. The Financial Times editorial states that the US government wants a de globalized world, "which will be a darker and relatively poorer world.".
Recently, some American politicians have played a new trick, vigorously claiming in major international occasions that they are not seeking to "decouple" from China, but rather focus on "removing risks". Is it difficult for the United States to recognize the harm of "decoupling and chain breaking" to the world economy and to change its past mistakes? Obviously not. They are trying to put a new coat on their words, seeking the initiative in their discourse with the saying of "removing risks", reducing criticism pressure from all parties, and even equating China with "risks", deceiving the international community and luring allies to further "decouple and cut ties" with China.
This discourse trap is deceptive and deceptive. The German magazine Der Spiegel believes that "de risk" sounds milder than "decoupling" and is a beautiful slogan, but it will create more risks. Singapore's Deputy Prime Minister Huang Xuncai pointed out that the voices of "de risk" targeting China will lead to a more fragmented and "decoupled" world economy. "A fragmented global economy will divide the world into competing regional groups.". The International Monetary Fund warns that if the global economy falls into severe fragmentation, overall economic output may shrink by up to 7%; If technological decoupling is added, some countries may suffer losses as high as 12% of their gross domestic product.
The US Foreign Affairs magazine bluntly stated that the US's push for "risk reduction" is actually aimed at limiting China's ability in strategic areas related to national security, limiting China's position in key raw materials and their processing, and limiting the impact of the Chinese market on a global scale. This can be seen from the recent actions of the United States: continue to promote the "China Competition Act 2.0" to strengthen export controls and restrict US investment in China, and prevent China from obtaining advanced technology; Convene a ministerial meeting on the "Indo Pacific Economic Framework" and promote exclusive economic and trade circles; Coercing the Netherlands to include some semiconductor related products such as lithography machines in export controls... The United States has made great efforts to implement a "technology blockade", build "small courtyards and high walls", and promote "more refined decoupling".
No matter how it is packaged, a lie is a lie. The latest poll released by the European Association for Foreign Relations in early June showed that the majority of respondents from 11 EU countries do not agree with the EU's implementation of a "risk-free" policy. French President Macron stated that both Europe and China should work together to avoid falling into the trap of decoupling and chain breaking. Hungarian Foreign Minister Szyardo pointed out that European countries should have a more objective understanding of China. Europe's insistence on seeking to "decouple" or "remove risks" from China is tantamount to "seeking shortsightedness". All parties gradually realize that the so-called "reducing dependence" and "removing risks" essentially politicizes and ideologizes economic and trade issues.
Compared to the risks posed by the United States, let's take a look at what China has brought to the world economy: from 2013 to 2021, China's average contribution to world economic growth exceeded the sum of the G7 countries. The International Monetary Fund predicts that China's contribution to global economic growth in 2023 will be about one-third, making it a major highlight of global growth. The latest report from the World Trade Organization has raised expectations for the growth rate of global trade in goods this year, stating that China is a "key factor". Today, China is a major trading partner of over 140 countries and regions, with a daily direct investment of 320 million US dollars from China going global, and more than 3000 foreign-funded enterprises settling in China every month; Today, China has a population of over 1.4 billion and the world's largest and most growing middle-income group, with a huge market potential. Keith Bennett, Vice Chairman of 48 UK Group Clubs, bluntly stated that China is an opportunity rather than a risk. Tesla CEO Elon Musk has expressed opposition to "decoupling and chain breaking" and is willing to continue expanding its business in China and sharing development opportunities in China.
The fact is clear that China's development brings opportunities to the world economy, and the United States is the biggest source of risk to the world economy. Some American politicians who are obsessed with lies and lies should wake up. Blaming China, labeling China, and advocating for "de Sinicization" not only fail to solve America's own problems, but also backfire on itself, dragging down world economic development, and ultimately being despised by the world.
