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
Lee Wee Shing why be bowed over by it?
It is what it is… And all the other parts of the world have something great to contribute also.
But someone had to play leader.
Now the world will become more multinational in its distribution of power that’s great.
But didn’t the west create some kind of even playing field?
Don’t forget that different cultures have always been warring.
And now we have a kind of standard playing field whereby we can all kind of speak the same language and understand each other..
Hey maybe the west has paved the way to one human race. Isn’t that a good thing?
Maybe this anti West thing is part of the path to a catch up for the developing world but I just hate to hear all this anti West.
Let’s see the positive side of life and the possibilities for a great future.
Where even countries like Iran and Turkey would no longer consider practicing beheading or subjegating women.
This is the even playing field that western dominance has created and now we are ready to reap the benefits, that’s great.
America’s failure to use its economic and financial power against North Korea and its allies China and Russia is indeed puzzling. A complete economic and financial boycott is probably the only way to prevent a war that could cause world civilization to collapse. See http://www.thedailybeast.com/war-with-north-korea-starts-to-look-inevitable.
Feel so sorry for JFSS having people of GN’s calibre as senior fellow. On the other hand, that is good for world, or at least East Asia, peace. He’ll be no help for Japan if she wishes to return to its imperialist, agreesive ways, as an American minion.
Stuart Budgen I am a product of Western university. I lived, worked studied in one of your countries. Initially I was awed and bowed over by your societies. Not anymore. I hate it that some of you guys think yours is the best systems and try to export your model around the world as if one size fits all. You guys try to hijack the word "international community" to advance your selfish agenda at the UN for too long. The world needs to restore to its true democracy which is that the European and US population is only a minute part of the world’s total population. You guys do not deserve such bloated representation.
The writer is so shamefully self righteous!
This article is all editorial speculation and no basis in fact. China responds political issues on a political manner and responds to economic issues in kind. She responds to matters in proper perspective and does not comingle the issues.
Oh, it will. And you might just not be so lucky and have the chance to see that day, Sir.
As if the US hasn’t lashed out sanctions on all its opponents that it didn’t like. And it is doing it right now. And just yesterday Trump, the president of a presumably civilized country, which crowns itself as the king of democracy on this planet, ushered his total destruction and annihlation threat to fellow human beings in a certain country. What a disgrace to humanity. Yet this author here wants to lecture China about morality and blah blah blah. China just learned so well from the teacher. Face it, China and Us both know well how to use this tool, it’s a brilliant strategy. Obama admitted in his interview once as well, sometimes we just have to twist the arms of certain countries to do what we want them to do. There you have it.
Of course Grant fails to provide context for China’s economic pressure on Korea and its neighbors. THAAD he would have ͏u͏s believe is a deterrent against the Kim regime and China’s moves in the South China Sea and in the Pacific are aimed at its neighbors and not ͏U͏S military hardware and installations that dot the waters of the mainland and are based in the neighborhood. Either Mr. Newsham is a fool and believes his own rhetoric or he’s a conscious manipulator who uses his knowledge of the structure of language to effect certain outcomes. Considering he’s works as a senior fellow at the Japan Forum for Strategic Studies, which is funded by the defense department I’d take a bet he’s the latter, trying to play ͏u͏s as fools.
While the author is somewhat correct, he utterly neglects the coercive effects of the U.S. via the World Bank and IMF, as well as outright collusion with big oil and other corporations like Monsanto, etc etc. as well as our own economic sanctions on many countries like Venezuela, Iraq, Iran, Libya, Cuba, etc etc
And we create and fund opposition groups, assist in espionage and covert operations for coup d’etat, arm insurgencies, assassinate, and outright invade.
Others can play the game of "weaponizing" trade. If the command economy of China picks on Japanese and Koean companies operating on the mainland, perhaps some of the market economies of the West should question whether selected Chinese exports are safe to consume.
You should have a little bit more respect sir.
Has the United States upset you so much in its reign on earth that you now feel free to dish out insults.
Has it done not one thing good to you, Asia or this world?
When Asia starts to mature as a modern world power let’s hope that basic west revenge thought isn’t going to be what it has to offer the world.
Take a trip to Australia or France you will love it and it might get you to look upon the west in a different way too.
So let’s blame the North Korea thing on the US shall we?
How very convenient for resentful and small minded people to put the blame on the US only.
Anyway we are strong enough to take the heat. Like good fathers we always get grilled by our belligerent children.
Let’s hope that as Asia starts to mature as a modern power it will remember all the deep and wise philosophy it is supposed to be famous for..
You guys are so quick to start talking bad about the US and its allies..
You think that because China is getting stronger and more assertive that suddenly the US will just bow down and become weak?
Whatever you may think of the United States it is still a great nation and it still leads the world.
And even if one day it should start to weaken there should still very much be credit where credit is due.
You guys should visit the western countries who you now see fit to talk about with disrespect.
You will quickly understand that our countries genuinely are pretty awesome. And our values are worth defending.
The US history has been no more violent than all of the empires which have existed on this earth before it, including Asian Empires.
And the United States has given sweat, blood and tears to this world and despite its flaws you got to give it credit were credit is due.
And if you guys wish to see Asia rise up into a world leading spot now, do you think anti western thought is what the world needs it to give as an example?
When Ghandi said goodbye to the British it was with the utmost respect.
Because it was of the British that he could become the man that he was.
What example is Asia going to show to the world?
We are dumb and resentful and now the US must pay?
Surely Asia can show us something more enlightened than that isn’t it?!
If the student has matured you would think he would show a little more respect for the teacher.
I see way too much anti west from alot of the readers of Asia times and it does make me sad indeed.
You guys should visit some of our countries and you will quickly understand that the values that we defend are good and wholesome. And that the influence it has had on Asian countries isn’t necessarily a bad thing either.
The USA did not start world War two and China and Russia have both committed worse atrocities in their respective histories.
Come on guts there must be something you still believe in in the old stars and stripes?!
And in any case don’t start thinking the west is in recline. China has a long long way to go before it is really established in itself (if it makes it) and even if it does the US and its allies will always be there to counter balance.
That’s why the rise of China is good too. It helps the US to be a better version of itself…
I agree, opinion pieces will always be opion pieces where is the evidence, and is this not a natural response if your neighbor tried to build a missile system in his yard, would the writer of this article not object? then this opinioned artile only serves to reaffirm the writer’s own views and opinions ;D colourfull adjectives only added fuel to the fire, Im not saying I agree with China’s economics actions but this article only serves to widen racial tentions in the region and a eye for an eye leaves us all blind…..
Mr Newsham, my mother always said to me when I was young "Know who butters your bread"———–it was a huge mistake by South Korea to take in the THAAD missile system———–no one even knows if it works?——-and in a war with North Korea the missile system would not save South Korea. The hand writing is on the wall with South Korea’s relationship with America ———who ever is in charge——–South Korea will figure out in the future that being bullied by the Amricans is bad for business———–and Peter Seo is correct———your article is void of common sense and a reality of what is really going on in the region!!
Isn’t Trump openly leveraging economics and politics with China you bloody hypocrite. A solid punch in your pointy nose sounds just about right.
"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."
This is just the first sentence and it reflects an utter lack of understanding from the author. The US has no good ally in East Asia. Any ally that is so soft and irresolute as SK or Japan is not a good ally. Any ally of benefit to the US will have to be game and fearless, the antithesis of SK and Japan.
Conversely, the US is also becoming no good ally for SK and Japan, because American bravado is causing them tremendous and unnecessary anxiety, and that they have become softies who absolutely dread war and death.
The US is asking an ally that has not fought a war for 2/3 of a century to endure the loss of a mere 0.1% of its population. How ridiculous! The ally has a large fraction of its population living in high-density cities with abject vulnerability.
Fatefully, SK needs the Chinese consumers and hence has to cater to their patriotism. Case closed.
This writer is living in a fantasy world where once upon a time what the US say and does what it wants. Now It could hardly look after itself,even less for so called allies.