Commentary: Triumph will be in China's hands

Source: Xinhua| 2019-05-21 17:37:08|Editor: xuxin
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BEIJING, May 21 (Xinhua) -- As the trade war between the United States and China escalates, the former, who started the fight, will bear the heavy brunt of its unilateralism and protectionism as China is well armed to deliver counterpunches.

Tension between the world's two largest economies reached a new height after the United States levied additional duties on Chinese goods and even used "national security" concerns to bully Huawei, a major Chinese telecommunications company.

Facing an aggressive U.S. protectionist stance, China has demonstrated full readiness to fight back by announcing tariff countermeasures.

China has reiterated that necessary counterstrikes will be rolled out if the United States continued to act wilfully.

Make no mistake, China is not bluffing. There are many possible options given the inter-dependency of the two economies.

A trade war benefits nobody, but China has a resilient economy and abundant policy tools to weather further trade-war hits, while the U.S. long economic expansion has peaked and will soon start to feel the pinch.

U.S. stocks have fluctuated violently in the past two weeks over renewed fears of a worsening trade war. Possible financial spillovers could turn the almost decade-long bullish stock market into a bearish one, jeopardizing the recovering U.S. economy.

U.S. multinationals, which have reaped a lot via access to the vast Chinese market and global supply chain with reduced costs and enhanced competitiveness, would also be hit hard if their share in the market shrinks as the U.S. moves disrupt market order.

No doubt China will also suffer bruises during the fight, but further U.S. unilateral protectionist moves would only boost China's morale and patriotism to unite as one formidable force to counter any challenges, as seen repeatedly in China's history.

The United States shutting its door to Chinese products and investors will hurt involved players, but will help push China's economic transition to become a self-made global innovator.

China has been striving to upgrade its industrial structure by adopting an innovation-driven development strategy. Chinese firms are investing heavily in research and development to expand technological independence.

Reducing reliance on exports to power growth, the country's ongoing supply-side reform will unleash huge consumption. China has the world's largest market with about 1.4 billion consumers, offering a growing pie, large and lucrative enough to attract any country to take a bite. The Belt and Road Initiative will help connect more markets.

The world's largest developing economy has vowed its dedication to reform and opening up, which is actually the trump card that it holds against any unilateralism and protectionism.

Triumph will be in China's hands as multilateralism and free trade is the trend of the times and enjoys global majority support.