USA may wage trade war with China to crush Chinese pirates

It seems that China and the USA may soon launch a trade war with each other. This economic conflict may exert a highly negative influence on all aspects of international relations between the two countries and their allies. The possibility for the conflict appeared when Washington applied an official petition to the World Trade Organization and complained of Beijing’s policies in the field of copyright protection. It has become the third attempt of the US administration to call the Chinese economic policy into question. Experts say that China may take serious measures in return in the nearest future.

To put it in a nutshell, the USA accused China of taking weak efforts in the struggle against pirated production. Washington believes that top Chinese officials support the pirate industry and restrict the distribution of US films, music and literature in China. One has to acknowledge that the USA had every reason to file such a petition against China: Chinese pirates are known worldwide. The Chinese government has taken new measures recently to toughen penalties against copyright violators, but the efforts produced no effect at all.

On the other hand, the USA’s anti-Chinese initiative is based on completely different motives. Washington is particularly supposed to do everything possible to stop Beijing from lowering the rate of the national Chinese currency, yuan. The cheap yuan automatically increases the Chinese export to the USA. This point of view is shared by the majority of Democratic congressmen. One shall assume that there will be more anti-Chinese attacks from the USA as the election year 2008 is drawing near.

As a rule, Western politicians become more aggressive shortly before elections. Some of them stand up against the free trade, which shows negative influence on the national producers.

The international expert community is expecting Beijing to strike a blow against the USA administration in return. The Chinese leadership will run out of its patience sooner or later. US-large companies purchasing spare parts or elements for their products may face severe problems first and foremost.

If the two superpowers decide to continue the argument, their national economies will have to endure a whole collection of difficulties and tests. For example, China is known in the world as a country that managed to work an economic miracle. Now the world will have a chance to see if that miracle can go up in smoke or not. On the other hand, the US economy can also be tested with the trade war with China. It is worthy of note that China plans to diversify its economic ties. Chinese officials plan a series of meetings with their Japanese colleagues and businessmen. It goes without saying that the economic cooperation between China and Japan will continue to grow despite certain political problems between the two countries.


Translated by Dmitry Sudakov

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Author`s name Dmitry Sudakov