Conclusion

The West Needs a Cohesive China Policy and Unconventional Responses to China-Posed Challenges

We have outlined five major areas where China and the West are in an economic war.

In all of them China is mostly on the offensive. It appears that more often than not it is effectively setting the terms of the game, or rather the battle, while the frustrated West expresses its dissatisfaction and dismay, but mostly fails to prevent it.

In spite of all the objections from its Western counterparts, China continues to appreciate yuan at the slow pace it prefers. It is aggressively expanding its trade surplus and continues to rely on exporting industries as major growth drivers. Its rapidly expanding market is captured more by domestic companies than Western exporters. Its currency, trade, and industrial policies induce Western firms not to export, but to produce locally.

Beijing has bluntly rejected the framework proposed by the West on the CO2 emissions cuts. Having refused to take binding obligations, it is pressing Western states to support its (and other developing countries’) voluntary steps in this area, in addition to making cuts of their own, which will be, of course, mandatory.

More and more, China is obtaining direct access to natural resources around the Third World, boosting its overall economic and political clout in Asia, Africa, and Latin America. Its national oil and other resource companies are rapidly expanding their global presence, challenging Western competitors, ...

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