THE US ADOPTS CHINA’S PLAYBOOK
Using tariffs and market access as leverage is now a strategy of both Beijing and Washington. For years, China has used economic measures to retaliate against neighbours who challenge it geopolitically.
In 2017, the Chinese government directed travel agencies to stop selling tour packages to South Korea, in response to Seoul agreeing to host the US THAAD missile system. This led to a drastic drop in Chinese visitors and tourism spending for South Korea.
After Australia called for an independent COVID-19 inquiry in April 2020, Beijing slapped tariffs and informal bans on Australian barley, beef and wine.
In January, China banned exports of goods to Japan that can be used for military purposes, including certain rare earth elements, over Japanese Prime Minister Sanae Takaichi’s statements regarding Taiwan.
In doing so, China reminds the world where supply chain power sits when it comes to its grip on rare earths. Under Mr Trump, Washington does the same with market access to the US – openly and unapologetically.
Mr Trump threatened Denmark and other EU countries that pushed back on him over Greenland with tariffs of up to 25 per cent, which he walked back on at Davos. He floated tariffs of up to 200 per cent on French wine and champagne if French President Emmanuel Macron refused to join his proposed Gaza Board of Peace.
https://www.channelnewsasia.com/commentary/trump-davos-speech-us-china-greenland-5876211
