Belt and Road Facilitates Winning Trade War, Competition with the US


When Chinese President launched his Belt and Road initiative, he knew that to switch to innovation- and creation-led growth China has move its labor intensive industries abroad, but there had to be infrastructures of transport and power generation there. He has the vision five years ahead of Trump’s launch of trade war.

Chinese labor intensive industries should have been busy to relocate in Belt and Road areas abroad while Xi has been striving to carry out his ambitious Belt and Road projects. However, just as pointed out in Reuters’ report “Supply chain reaction: trade war refugees race to relocate to Vietnam, Thailand” today, there are problems “ranging from red-tape to skilled labor and limited infrastructure”. Anyway, quite a few has relocated or are making preparations to relocate due to Xi’s reform that encourages innovation and creation while discourages expansion of labor-intensive industries.

The report says that there is “a frenzy of activity across Asia in recent months: executives are requesting product samples, touring industrial parks, hiring lawyers and meeting with officials”. However, those are mainly foreign executives as Chinese ones began doing so earlier due to Xi’s reform.

Xi cannot drive away foreign labor-intensive industries in China to release land, labor infrastructures and other resources to make way for foreign investment in high technology. Trump’s trade war is now helping Xi do so.

Due to the need for infrastructures in the countries those enterprises will move to, Belt and Road projects will much more profitable and in hot demand. They will attract those who are now demonizing the projects as debt traps .

When low-tech enterprises in China have moved to Belt and Road areas or switched to higher-tech sectors and when low-tech foreign investment has been replaced by high-tech one, Chinese economy will take off again. Moreover, the Belt and Road projects will make areas involved rich and become growing markets for China’s export.

It is very clear Belt and Road will facilitate China in winning trade war or economic competition with the US.

Comment by Chan Kai Yee on Beuters’ report, full text of which can be viewed at https://www.reuters.com/article/us-usa-trade-china-vietnam-insight/supply-chain-reaction-trade-war-refugees-race-to-relocate-to-vietnam-thailand-idUSKCN1NX2XZ


2 Comments on “Belt and Road Facilitates Winning Trade War, Competition with the US”

  1. Steve says:

    Whilst USA is looking down at Nadir and China gazing the Zenith stars of prosperity, nations like Vietnam, Pakistan and Thailand should highly respect and appreciate China’s brainchild Belt and Road initiatives.
    Loggerhead India maybe losing bigtime without the India-Pakistan-China corridor, India will suffer a huge economic loss. Supply chain manufacturers will bypass India into Thailand and Vietnam. Lower end manufacturing countries like Myanmar, Bangladesh, Sri Lanka, Cambodia, others will benefit tremendously. China will have lots of geostrategic economic partners

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    • kommonsense says:

      reason number 8 trillion why india’s still in the toilet 7 decades after independence.
      100 geniuses surrounded by 1 billion morons. it’s hard to soar like eagles when one has to work with turkeys.

      it’s hilarious and scary that it points to the inescapable conclusion that the only way for them to advance is to be re-conquered…..

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