When North Korea rattles its saber too loudly, like a good ally the United States sends F35 fighters and B1 bombers over the peninsula to reassure South Korea. But when adversaries use economic bullying of American allies they are on their own.
China has used this tactic against South Korea since Seoul agreed to install a THAAD missile defense system a year ago. The Lotte group that provided the land for the missile batteries has since shuttered stores in China after being hit with so-called ‘fire safety’ violations. Lotte recently announced it may sell all its stores in China.
Chinese tour groups have mysteriously stopped coming to South Korea, and Hyundai motors has had ‘trouble’ with its local Chinese partner with sales dropping precipitously. Many other South Korean companies have been hit, along with the South Korean economy.
China would have the world believe this is simply coincidence, or just spontaneous resentment by Chinese consumers. It’s not. It is Beijing’s modus operandi – using commercial intimidation to get its way on political and security issues.
We’ve seen this before. After the Scarborough Shoal, South China Sea, dispute with the Philippines in 2012, China halted banana imports from the Philippines owing to sudden ‘health’ concerns.
And in 2010 when the Japanese Coast Guard seized a Chinese fishing boat that rammed a coast guard vessel near the Senkaku islands, China cut off exports of rare-earth minerals to Japan (and the US and EU).
Beijing claimed it didn’t have enough of the materials used in high-tech manufacturing for its own companies. The Chinese government even drummed up riots against Japanese businesses in China. (The World Trade Organization later ruled the rare-earth export bans illegal.)
Australia is routinely threatened with commercial punishment if it sides too closely with the US on South China Sea issues and other regional defense matters.
And the list goes on
Beijing’s measures work by inflicting pain on a identified constituency (local businesses) who might then lobby their government to back off, and scare other companies and even countries into obedience.
Even better, China doesn’t use sanctions but mundane bureaucratic tools that attract no international or US criticism – though they should. The measures can be turned on and off like a light switch.
This Chinese economic assault and battery elicits a puzzling lack of reaction from the United States.
This Chinese economic assault and battery elicits a puzzling lack of reaction from the United States.
To the extent the Americans do nothing to assist friends, it creates friction and even resentment at being left to fend for oneself, despite being a loyal ally.
A US administration needs to finally recognize Chinese economic coercion for what it is. War by another name, and efforts to obtain strategic and tactical military advantage while splitting US alliances.
A response to Chinese commercial intimidation should be planned in advance with allies and measures put in place to make up for the harm done. This might include easier access to US markets for certain products by raising or eliminating important quotas or tariffs, temporarily or permanently.
Also, retaliate against Chinese entities selling in the local and US markets for such overt and politically motivated damage to commercial interests.
Consider asymmetrical responses that are within bureaucratic or administrative purview, such as indefinitely delayed visas for CCP elite, revoked green cards, liens on bank accounts, taking 30 days to clear Chinese ships entering US ports owing to ‘health and safety concerns’ or intellectual property issues.
Governments spend years protesting standards, technical barriers to trade, and other far less explicit cases of discrimination and economic aggression, but do nothing against China’s blatant economic warfare intended to weaken alliances and national defense.
The US needs to get moving
In South Korea’s case, Chinese economic pressure should have been anticipated and a set of trade and economic support measures readied to make up for the damage caused.
Also, the Trump administration might have considered a few high profile activities touting the US-Korea Free Trade Agreement. Or perhaps encouraging a visit by US private investment groups to Seoul to investigate investment opportunities might have reassured South Koreans of American commitment.
Instead, South Korean President Moon Jae-in got a lecture over steel and the US’s unilateral intent to renegotiate its trade agreement with the country. What he needed to hear, instead, were words (or better yet, actions) that spelt out: “we’ve got your back.”
The US needs to look after its friends not just when they are attacked with rockets and bombs. Economic attacks are directed towards the same end without the shock and awe.
America’s current stance is akin to a big-brother promising to defend his younger brother if bullies attack him with clubs, but standing by if they just twist his arm until he hands over his lunch money.
What’s required in both cases is a solid punch in the nose.
Grant Newsham is a Senior Research Fellow at the Japan Forum for Strategic Studies
Stuart Budgen I have visited your country and countries and I see hypocrisy all round and the so-called values you defend are blatantly and forcefully shoved down others’ throats, and is nothng more than the same traits of evangelism and fervour that your forefathers pushed Christianity to all and sundry, to continue your dominance and expolitation. The gweilos hasnt changed much from 500 years ago, when the same DNA gotten them to conquer and colonize and plunder the world, It was the same then and now, that you think and see culture as the best and foremost an dall others MUST adopt them or face the white man’s wraths.
Stuart Budgen No respect for the westerners, especially the dreaded Anglo Saxons. Yoiu hear !!!!
I thought US was the biggest bully in the world. Newham is dribbling with belligerent rhetotic.
not all empire that commit crime try to tell others that their murderous rampage is for the sakes of the victim. basically telling the victim they should be grateful the their killers. white forever derange
Stuart Budgen Let’s hope we can say goodbye to the past in a good way and go forwards into a brave new world without resentment and bitterness.
ypu maet be normal like the arabs getting usa goodness aka bombs
china brutal. example. they go to usa to kill the native indian EH?
so china has american style "trade sanction" what is new china always copy others
American mights cannot prevent casualities, which East Asians dread.
There is no serious enough cause to lose at few as 0.1% of a population in East Asia.
This is the crux that Americans should digest.
Stuart Budgen
Donald Trump shall indeed be blamed for his reckless bravado that caused needless escalation. I believe many in SK and Japan indeed agree very much. Little Bush shall have been blamed for labeling NK a part of the "axis of evil". This type of rhetoric served no purpose. Few would say that the US is solely to blame, only partly to blame. The US is supposed to be sane and sagacious.
The greater thrust is that American military might has very little chance to be relevant in East Asia, which is indeed quite mature.
It is maturity to weigh death against a cause for all nations.
The US has no real military fighting allies in East Asia as long as a war has not started. The US cannot expect East Asians, who have not had a war for 2/3 and later most of a century, to have the stomach to lose just 0.1% of population to advance American ideals and interests.
For attitude for war to stiffen in East Asia, SK, Japan and fatefully Taiwan, a war must have already started. Otherwise, all East Asians, including official allies SK and Japan will be irresolute and very dreadful of war.
The US has only lip-service allies, in SK and Japan, as long as a war has not started.
Fatefully, China will be able to achieve much, at least enough to see war as very ineffective, in the decades to come, without starting a war. Greater and greater threats without execution will continue to be highly effective for China. The NK crisis, precisely American morally correct inhibition against first strike on NK, forebodes this certain reality.
All the billions the US sinks into preparation to thwart China has little chance of being significant. The US has to be concerned about casualties of Asians of various nationalities, including the Japanese and the Chinese on Taiwan. China is never going to start a war because it will win enough without starting a war, and Taiwan and Japan will remain too irresolute to start a war when adequate pressure is applied.
Well of course they do. What kind of world do you think we are living in here?
Stop being a cry baby and expecting the world to live up to your ideals and accept it as it is.
And realize that western leaders are doing what they can to lead us in a good direction in the face of a very very diverse and complicated world.
It is high time, all countries who are bullied by China get together and sanction Chinese goods, then they will realize how it is like to lose a few hundred billion US$.
Stuart Budgen : The Ayatola Khomeini of Iran once said when the Shah was in power," We siend our best students to Western universities and colleges to study and four years later they come back with a piece of paper and they are still ignorant!"