The White House administration's top economic advisor expressed optimism over US economic growth and said it could top 4 percent for a "quarter or two." US President Donald Trump's economic chief, Larry Kudlow, made the remarks Wednesday, accusing China for the collapse in trade dialogue and for being insincere with its efforts in trying to solve trade disparity issues among both sides.
Kudlow is confused on many levels. He feels the US can dominate the rest of the world as Washington successfully peddles its homemade news to other nations. As everybody already knows, both sides had previously engaged in four rounds of trade war discussions. It was just last month when both sides issued a joint statement on their economic and trade consultations, vowing not to engage in a trade war.
Unfortunately, the US went back on its words and started a trade war against China. The White House needs to be held accountable for the breakdown in the joint statement. It should come as no surprise as the current administration has a reputation for not honoring previously reached agreements.
It seems the US desires a trade war while playing the role of an unassuming instigator. For this behavior, as a saying goes - To acquire by hypocritical means but long for gentleman's fame.
The expression sums up what the US government is doing. Washington should take some time to digest the wise proverb.
Kudlow's remarks also imply a demand for China's surrender. He expects the same results that the US government has achieved from how they have treated ZTE, the Chinese telecommunications company. Punitive penalties, mandatory reforms, and regular inspections conducted by US officials are probably Washington's goals in this latest trade salvo against China.
However, China is not an individual telecommunications company, but a strong country in the world. China can counter the unfair measure rolled out by the US, and the Chinese have the will to withstand such actions. China has already decided to accept the challenges from Washington and is ready for a prolonged trade war which could last many years. China will not accept any conditions of an armistice that would only humiliate the country and forfeit its sovereignty.
From China's perspective, Kudlow's touting of the US economy is nothing more than the White House playing the role of national cheerleader stoking public opinion. Their economy may have improved, but this upswing is just a symptom of inertia recovery and is really steps away from stagnation.
With a population of only 300 million, the US domestic market demands will turn sluggish, due to their decades-long industrialization process. The future of the US market rests within the global marketplace. Their current economic growth is only a phase spurred by economic fluctuations. The US economy will reach a dead-end if Washington abandons the Chinese market.
Yes, China's confidence is the result of its rapidly increasing market size and potential. Annual automobile and mobile phone sales now surpass US figures. In the future, China's market will be even stronger, and US markets will be left behind choking on exhaust fumes. It can be expected that major US companies will find themselves knocked out of industry sectors they once dominated.
Washington misjudged China's determination to defend its interests, and the power it can levy during a full-blown trade war, while also underestimating global reaction.
The US will eventually learn that China, along with other nations, will not be intimidated by a trade war. In the end, the US will have to decide whether they should abandon its unilateral intimidation strategy. For US President Trump, this trade war will not earn him a historic victory. Instead, history will remember it as a stain on his administration.
The current trade war has only just begun, and so far its impact has been psychological in nature. The actual pain it will bring to the economies of many nations will invariably unfold. Right now, it would be impossible to predict a final outcome.
Although in taking on a trade war, China is ready for any challenges and difficulties that may arise. The nation will continue its domestic market expansion to cover the losses generated from its US export business, which Washington will witness firsthand.
The only concern America really has at this moment is what it can expect to lose. It is time the US fastened their seatbelt because it can be guaranteed that they will be served a taste of their own medicine sooner rather than later.