More than tariffs: China sees trade war as a new US containment tactic

For nearly two weeks, China’s top leaders disappeared from public view as they gathered at a secluded beach resort in eastern Hebei province this month. Though the heavily guarded gathering in Beidaihe was secret, their agenda was likely dominated by the trade war with the United States – and the emerging view that the nations’ escalating tensions go beyond trade and economic disputes.

There are signs of a new resolve that sees the trade conflict as part of Washington’s design to temper China’s rise to greater power. While Beijing is willing to continue engaging the US – it has dispatched commerce vice-minister Wang Shouwen to the US for talks this month – the earlier optimism of finding a quick solution has been replaced by a grittier determination.

Observers said Wang was unlikely to achieve any breakthroughs other than paving the way for more negotiations.

“Trump is very confident now, and China should not appear weak,” a former Chinese trade official said, referring to US President Donald Trump. “China has to appear confident and stand firm, resisting the maximum challenges by Trump. Making too many concessions at an early stage will only push Trump to be more provocative.”

Leading up to and during the Beidaihe meeting, state media published a series of editorials and commentaries casting a harsher light on Sino-US relations. A signed commentary published by party mouthpiece People’s Daily on August 10 said the Trump administration had continued the “engagement plus containment” approach to China, hoping to significantly reshape China’s development in America’s image.

“A review of the trade negotiations with the US shows the American government has been inconsistent, ambivalent and capricious,” it said. “But the behind-the-scenes logic is pretty clear – it is never just about narrowing trade deficits, but to contain China in much broader areas.”