Why America Can’t Afford to Get Into a Trade War with China – The National Interest Online

Posted: March 4, 2017 at 1:02 am

Throughout the 2016 presidential election, Donald Trump blasted China for its protectionist trade policies, currency manipulation and a number of other accusations. Indeed, these accusations were not limited to Trump as China bashing is simply standard fare for anyone seeking elected office and on the campaign trail. Much of Trumps campaign was, however, met with derision. As the election process unfolded, the derision soon turned to snickers. As the election continued, the snickers turned downright somber while Trump sailed past his Republican opponents Jeb Bush, Ted Cruz, Marco Rubio and others who had been deemed more likely to become the GOP nominee.

Among the intelligentsia, the mood has turned to alarm as now President Trump has set out to do exactly as he promised during his America First campaign. To show his sincerity to the campaign promise of bringing jobs back to the United States, he kicked off his first day in the Oval Office by issuing an Executive Order that cancelled American participation in the Trans-Pacific Partnership. The TPP was President Obamas signature trade deal. It created a free-trade zone with eleven other nations for approximately 40 percent of the worlds economy. Trump also threatened to impose a 45 percent tariff on Chinese goods if China does not behave accordingly.

Since Trumps selection of Iowa governor Terry Branstad as his ambassador to China, the president may be backing away from some of his campaign promises. Still, the fact that Trump was elected based upon the use of these rhetorical devices suggests that there is a profound misunderstanding, if not complete lack of understanding, of the symbiotic relationship between the United States and China. It is also worth noting that, had his opponent Hillary Clinton won the election, she too would have won based upon some of the same anti-China trade rhetoric.

Is ignorance dangerous?

In his book, Anti-intellectualism in American Life (1963), Richard Hofstadter once wrote that after the 1952 election, the intellectual was now dismissed as an egghead, an oddity, [who] would be governed by a party which had little use for or understanding of him, and would be made the scapegoat for everything from the income tax to the attack on Pearl Harbor. Adding to that of Hofstadter, Arthur Schlesinger had remarked that anti-intellectualism (and anti-rationalism) has long been the anti-Semitism of the businessman. It appears that America has set a new low bar, with an electorate that is smug in its ignorance. Yet, it prides itself on knowing who best should guide the myriad U.S. policiesfrom trade, investment and currency to geopolitical strategyto achieve the national interest.

Americans always admire those that are decisive and true to their word. But those qualities are only admirable when decisions and actions are based upon a clear and unvarnished understanding of the problem. That either candidate could win an election based on attacking a trade policy that has benefitted so many people on both sides of the Pacific for so long is at best disingenuous, and at worst, exploitation. Voters need to be more informed about the policies and agendas of their candidates and politicians need to stop pandering to a political base that subscribes to a zero-sum, take no prisoners theology. Both need to develop an understanding of the historical context between the two countries.

Philosopher Sren Kierkegaard remarked that Life can only be understood backwards . . . but it must be lived forwards. In developing sensible and pragmatic Sino-U.S. policies for the future, likely the most consequential relationship in the twenty-first century, voters and policymakers must have at least an understanding and appreciation of the past.

Partners in peace

The generally understood starting point for Americas trade relations with China begins in 1784 when the privateer Empress of China set sail from New York Harbor for Canton (Guangzhou). In fact, trade relations had already begun during the seventeenth century. However, while Chinoiserie did exist in America at that time, direct trade with China was limited by the English Parliaments Navigation Act of 1651. It was not until after the 1783 Treaty of Paris that the Patriot war financier Robert Morris decided to establish trade between the new Republic of the United States and China to encourage others in the adventurous pursuit of commerce. Free from the mercantilist policies of England, Morris sent the Empress of China on its maiden voyage to China. In doing so, a tectonic shift was created for the Republic as it severed its commercial obeisance to the United Kingdom and embarked on a new relationship with the Middle Kingdom.

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Why America Can't Afford to Get Into a Trade War with China - The National Interest Online

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