USA Restrictions on China: We Can Come to Your Market but You Can Not Come to Us
https://www.rozen-bakher.com/timeline-risks/19/05/2022/0735
Published Date: 19 May 2022 at 07:35.
Risks Timeline by Dr. Ziva Rozen-Bakher
Comments on Contemporary Risks by Dr. Ziva Rozen-Bakher
Risks Timeline by Dr. Ziva Rozen-Bakher: https://www.rozen-bakher.com/timeline-risks-all
Dr. Ziva Rozen-Bakher
A Researcher in International Relations/International Business with a speciality in Risks for Foreign Direct Investment (FDI), International Trade, and Mergers and Acquisitions (M&As) in relation to Security Risks, Political Risks, Economic Risks, and Strategic Risks
19 May 2022 at 07:35. The West has an ambivalent attitude toward China. On the one hand, the West would like access to the 1.5 milliard people in China market, but on the other, the West would like to restrict the access of China to the West markets, which makes it impossible. In other words, there is a ‘price’ for International Trade between democracies and communist regimes, and in the case of China, there is a ‘price’ for access to the biggest market in the world, China, so any trying to make a policy of ‘we can come to your market but you can not come to us’ is doomed to fail. There is an alternative to ban access to strategic knowledge transfer via cutting ties of International Trade between countries like the direction of the West toward Russia, yet it’s doubtful if the West could afford the cutting ties with Russia, and obviously with China. If I look at China in terms of the politics of international trade, it’s hard to see signs that China is trying to spread Communism to other countries, so perhaps, this is the competitive advantage of China, namely ‘don’t deal with our communism and we don’t care about your democracy or your autocracy’, which allows China to expanse its political market share in many host countries, regardless of the regime type in the host countries. However, if I look at the West, then it’s a different story because the West and the USA, in particular, try to transform regimes into democracies via International trade and even via sanctions against non-freedom countries, which hinders the USA’s political market size in non-West host countries. Sometimes, a regime transformation may have more chance to occur when you are an ‘insider actor’ rather than an ‘outsider actor’ like in the case of the USA's sanctions against Afghanistan. We should remember that each nation has its evolution speed, so trying to speed it up may not bring the desired results.
Rozen-Bakher, Z. Restrictions on International Trade and Foreign Direct Investment (FDI): Nationalism-Mercantilism versus Trade Liberalism. Research Paper, PD9. https://www.rozen-bakher.com/research-papers/pd9
