Leading WTO role for China as it seeks to ride trade storm
US tariffs have given Beijing the chance to join up with other nations against Washington and position itself as a champion of free trade
The United States’ threat of tariffs on another US$200 billion worth of Chinese exports has intensified the focus on China’s strategy for defending a system central to its success and ensuring that it does not become isolated in a trade war.
Beijing’s worst nightmare is that trading powers such as the European Union and Japan take sides with the US to collectively force China to open up its market.
That would put it in a very difficult position, and concerns about such scenarios have prompted Beijing to rally support for defence of the existing world trade order.
US tariffs on Chinese exports will cause short-term pain and probably severe damage to the Chinese economy.
But tariffs against allies and rivals alike, and America’s undermining of the World Trade Organisation, has handed Beijing an opening to make common cause against the US with other trade partners and position itself as a champion of free trade.
To be sure, some partners like the EU and powerful member nations such as Germany may be vigorously pursuing grievances of their own with Chinese trade and investment policy.