The victory of Donald Trump as the US President-elect has rattled many capitals around the world, fearing the start of World Trade War-II in the next year further marginalizing their socio-economic integration, trans-regional connectivity and economic stability because of the expected projection of America First Policy, imposition of high tariffs, economic protectionism, isolation and onslaught of new kind of economic recipe due to which true spirit of economic globalization, international cooperation and even functionalities of global governance would be in the line of fire.
On the other hand, the Chinese BRI stands for true proponent of regional cooperation, trans-regional connectivity, quick global economic recovery, innovation, qualitative industrialization, digitalization and, above all, deepening relations between the Global South and the Global North making bridges of better understanding on common issues pressing for joint efforts to achieve SDGs goals pertaining to eradication of poverty, generation of new jobs, women empowerment, community development, health, education and fight against global warming through rigorous green technologies.
Unfortunately, even latest inauguration of the Peruvian port of Chancay funded and built at a cost of US$3.5 billion, which will halve the shipping time from South America to Asia, from 45 days to 23 days, boosting trade and commerce between the two continents has been dubbed as China’s smart geopolitical maneuvering to enter in the backyard of the USA in South America spoiling the true colours of BRI and China’s positive, productive and participatory role in the world creating a win-win situation and befitting propositions for all and connecting people, communities, continents and countries towards greater stability, sustainability and prosperity around the world. South America has now become a connecting hub of the BRI, fostering hopes of innovation, modernization, digitalization and openness. Thus BRI stands for integration not separation which is a good omen and one of the last resort of quick economic recovery.
It offers a chance for participant nations to shape an innovative and sustainable future. Alongside infrastructure development, a knowledge revolution is underway. The BRI integrates science, technology, and enhanced education to equip young people as future entrepreneurs and leaders, fostering better relationships and understanding among nations, as well as between Chinese and other cultures. Policymakers in China should create a “BRI’s Corridor of Young Entrepreneurship” to empower youth in the Global South and beyond, driving economic stability, sustainability, and supporting the global supply chain. This initiative could mitigate the effects of Trump’s World Trade War-II and promote economic, industrial, technological and trade equilibrium.
In Africa, the BRI has revolutionized its economies, communities, countries by providing some of the development tonic. According to the International Monetary Fund, BRI funding is filling many of the continent’s long-standing infrastructure gaps and generating positive ancillary benefits. Chinese railway projects in East Africa are one example, with the Nairobi-Mombasa and Addis Ababa-Djibouti lines opening potential for a flow of international investment.
The CPEC is one of the salient components of BRI to date. This network of projects, together forming the single-biggest BRI program with financing and infrastructure worth more than US$60 billion, connects western China to Gwadar. The corridor will provide a new trading route, opening up the country to multiple industrial and trading opportunities.
Additionally, in Southeast Asia, BRI infrastructure projects in Cambodia, Laos, Vietnam, Indonesia and Malaysia have upgraded their railways, ports, industrial capacities and manufacturing productivity. Even numerous BRI’s sponsored industrial parks have become symbols of innovation, digitalization and modernization promoting green technologies, hybrid agriculture and engineering products in these countries.
According to the US Chamber of Commerce, the Biden administration is set to unveil new export restrictions on China as soon as next week. The new regulations could add up to 200 Chinese chip companies to a trade restriction list that bars most US suppliers from shipping goods to the targeted firms.
The commerce department, which oversees US export policy, plans to publish the new regulations prior to the Thanksgiving break. The update, if accurate, shows the Biden administration is plowing ahead with plans to further crack down on China’s access to semiconductors even as the start of Trump’s second term in January approaches.
Biden has imposed a raft of export controls on China, aiming to halt its technological advances due to concerns that the technology could bolster China’s military, with the first round of regulations likely including restrictions on chip-making tool shipments. Additionally, the imposition of tariffs by certain countries on China’s new key exports—electric vehicles, lithium batteries, and photovoltaic products—represents an unfair, illegal, and unreasonable protectionist practice that supports Trumponomics and contributes to the escalation of Trade War-II.
China released its trade figures for the first three quarters of 2024 on Monday, showing a positive overall trend despite internal and external challenges. The “new three” items, a key pillar of China’s exports, remained strong, with exports reaching 757.83 billion Yuan (US$107.03 billion), accounting for 4.1 percent of total exports and welcomed by over 200 countries and regions. This reflects a positive omen for China’s trade. However, the nomination of hawkish politicians and policymakers in the Trump cabinet signals the looming threat of Trade War-II against China and its products in the coming year.
To mitigate the expected spillover ramifications China has unveiled new measures after the victory of Trump in the recently held elections in the USA. The Chinese policy makers plan to further support its economy and its associated sectors. Trump won the US election on a platform that promised steep import taxes, including tariffs as high as 60 percent on Chinese-made goods.
The author suggests that Chinese policymakers should devise a holistic and comprehensive policy to tackle the expected onslaught of Trumponomics through BRI’s diversification drive, especially in Africa, Asia, the Asia Pacific, Central Asia, South America, and the EU. This should include innovative, integrated initiatives such as BRI’s EVs Corridor, BRI’s Renewables Corridor, BRI’s Open Science Corridor, BRI’s Health Corridor, and BRI’s Safety & Security Corridor in Africa, the Middle East, and South Asia, promoting stable, sustainable economic development, social productivity, industrial growth, and smart, knowledge-based economies in BRI member countries. Relocating qualitative industries to BRI countries, forming new trade and manufacturing clusters, and developing Artificial Intelligence Corridors, quantum technologies, digitalization, and modernization would benefit China amid World Trade War-II.
