The Revenge of the Dragon and the Trade War

Benefits that could turn into the contrary for many African countries, who have obtained loans and Chinese funding. The so-called ‘loan trap’ could be triggered if they are unable to return what has been received. All this while the Chinese military presence in Africa is constantly growing.

Xi Jinping has made no secret of the incompatibility of the Chinese political regime with Western democratic systems, claiming for the Chinese Communist Party the monopoly of power in every aspect. The prospect that Beijing can export its methods of government, totally illiberal and undemocratic, in the areas of the planet that progressively has an economic influence, can only generate concern in Western public opinion.

All the more so because Xi assumes that China will soon be the greatest planetary power, capable of guiding global political choices.

The Beijing government, between 2015 and 2019, has promoted intense political propaganda abroad, using Chinese Cultural Institutions, social media, and international television networks.

Finally, it increased military pressure on the South China Sea area, generating great disquiet in diplomatic circles and in the major states.

From engagement to global competition and the suspension of multilateralism

Donal Trump being elected as the USA president has resulted in an abrupt change. Chinese exports have been limited by heavy customs duties, and, a trade war has started which has also involved the EU. The principle of free trade seems to have entered into crisis and with it the multilateralism that had characterized West-China relations. It is hoped that these contrasts, so radical, are a phase of adjustment of planetary economic relations and that these growing tensions do note create new armed conflicts.

Furthermore, in recent years, the strategic and military tensions caused by Chinese claims in the Far East have worsened. Popular protests over Beijing’s military advance in the South China Sea are frequent in the Philippines, on archipelagos that Manila considers to be subject to its sovereignty.

Vietnam, Malaysia and Brunei are also claiming ownership of islands, which are often only rocks emerging from the water, and which the Chinese are heavily militarizing. Indonesia complains of the presence of dozens of Chinese fishing boats, escorted to its territorial waters by the Beijing coast guard, among the Natuna Islands. Jakarta, encouraged by Vietnam and Malaysia, has mobilized warships and fighter jets. The US is constantly strengthening its military presence in the area they sell massive quantities of weapons to countries that could be aggressively attacked by Beijing.

The reasons for the great interest in the South China Sea are different. Certainly, the wealth of fish stocks and gas deposits. But, firstly, strategic positions from both the military and economic point of views: about a quarter of world trade passes through that sea. Its control is therefore essential.

Not forgetting, then, the Taiwan issue, considered a rebellious Chinese province, destined, at all costs, to be brought back to obedience, including war and invasion of the island. The USA has declared that they will not allow it. Airborne military exercises are taking place at an ever-increasing pace and it does not seem that there is room, nor will be, for negotiation.

Bibliography

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H. McAleavy: Storia della Cina moderna: dalla dinastia Manciù alla Rivoluzione culturale, Città di Castello, Odoya, 2019

Ka. Vogelsang: Cina: una storia millenaria, Einaudi, 2014.

M. Sabattini, P. Santangelo: Storia della Cina, Laterza, 2010.