Should Trump Wage A Trade War with China To Get Compliance With UN Sanctions on North Korea?
|It looks like more people are beginning to realize that the North Korean problem is really a Chinese problem. Here is what journalist Gordon Chang thinks should be done by the incoming Trump administration to address the Chinese backing of North Korea:
North Korea looks impossible to solve, and it is if we see China as on our side. It is not. But if we treat China as part of the problem, which it most certainly is, then we can begin to craft solutions, like secondary sanctions. Xi Jinping, the Chinese leader, will stop supporting North Korea only when the costs of doing so are too high. So far, his country has suffered almost no penalty.
To impose costs, Trump’s administration could, among other things, cut offending Chinese banks off from the global financial system, sanction every Chinese proliferator, and impose his threatened 45% across-the-board tariff on China’s goods. He could end negotiations on the Bilateral Investment Treaty and treat Chinese businesses like Beijing treats American ones.
And Mr. Trump, starting January 20, will have the tools to raise the costs on Beijing. The Chinese will surely retaliate, but they have few effective options for a long-term struggle. After all, last year they ran a $334.1 billion trade surplus in goods and services against the United States. Trade-surplus countries are vulnerable in trade wars, and that is especially true of a China with an already fragile economy that is dependent on the American market. [Forbes]
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