Daily Times

Since the Obama administration, the Global Economic order has been working smoothly, the United States (US) and its Western allies are on the same page; knowing that the created order has some new major players from regions which they dominated for centuries. Obama’s Asia policy was dubbed as the revitalization of the containment strategy, to cap the increasing influence of China. The Obama administration highly valued its allies, in an effort to compete with new competitors, by calling Russia a regional power and challenging China in the South China Sea. The US invaded many countries just to preserve the economic order, however, the trade and economic ammunition was put aside, and efforts were made to forge more new multilateral frameworks and deals that would be able to fill the gaps in upcoming challenges like nuclear proliferation and climate change.

On the other hand, the Trump administration highly values the US’ trade practices, and alleges that it’s because of the shortsightedness of the successive US administrations, and their unilateral concessions in the name of globalism that has created new economic competitors. China became a member of the world trade organisation in December 2001, after intense negotiations.

China’s projects like the Belt and Road initiative, and its focus on Africa’s development have attracted many countries to join the caravan of development led by China. component, but due to greater interdependence and because of free

The Trump administration’s dislike of multilateralism is rooted in its competition with China, and its subsequent economic success. Therefore, they are resorting back to old ways to kill any potential rival using America’s economic dominance. China’s WTO accession was not just a win for China, but for the Western-led order which was enriched by its presence in the 17 years. The western-led economic order is now facing threat from its own creator, with Canada finding it hard to strike a deal with Trump as a new North American Free Trade Agreement  (NAFTA) member. The west does not have a strategy to deal with Trump’s America, it is unwilling to follow the rule-based order, but at the same time it is also wary of new winners like Brazil, India and China. The European powers will soon be pushed to take sides. This fissure in the trans-Atlantic alliance might create temporary chaos, but the willingness of Europe and Asia to work together under the stated principles of free trade and multilateralism, might isolate the US. In a globalised world, military power, and security alliances are not show stealers, as we saw in the recent standoff between Qatar and its Gulf neighbours, Qatar proved the blockade ineffective but also portrayed a positive image because of its thriving economy. Qatar is the world’s largest LNG exporter, and an efficient part of the LNG based energy order. Moreover, Qatar just announced a 10 billion euros investment in Germany.

China’s projects like the Belt and Road initiative, and its focus on Africa’s development have attracted many countries to join the caravan of development led by China. National power was once gauged by the dominant military component, but due to greater interdependence and because of free trade, multilateralism proves to be essential. A world addicted to comparative advantages can no longer revert back to centuries old trade practices, China’s contribution to the economy is massive; the US and a few of its European partner must embrace and accept the brave new world. The main ideology embraced by Asia and its leading giant China is of cooperation and development, a path which many European giants tout as the only way forward in the face of growing US protectionism. If a cold war like the one that occured past happened now, it would herald the destruction of the entire world.

The writer is has a degree in MSc Strategic Studies. He can be reached at asfpak15@yahoo.com

Published in Daily Times, October 3^rd 2018.