Andrew Leung

To end the trade war and meet its centenary goals, China must embrace soft power and become more likeable

Beijing should treat broad anti-China sentiment as a chance to not only speed up structural reforms, but also embrace soft power changes that will make the Chinese dream easier to achieve

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Andrew Leung

Published: 1:00am, 17 May 2019Updated: 3:38am, 17 May 2019

The breakdown in US-China trade talks was a surprise. At the 11th hour, China seemed to decide to remove commitments for laws to codify promised concessions.

Upping the ante, US President Donald Trump ordered tariff hikes on all remaining Chinese exports.

While most concessions represent the structural reforms China needs, contrary opinions prevail that they should be implemented in a way the nation can live with.

Caving in with a loaded gun overhead is reminiscent of past national humiliations. The anti-imperialist May Fourth Movement spirit remains alive. It is also felt that China has given in too much while America has conceded too little.

China’s Vice Premier Liu after trade talks at the offices of the US Trade Representative in Washington. Photo: EPA-EFE

With the economy stabilising, some believe China could outlast the current Trump administration with a prolonged trade war. Widening tariffs to catch all Chinese exports will disproportionally hit US consumers, importers and manufacturers.

China has announced retaliatory tariffs on 5,000 carefully targeted US products worth US$60 billion. While Beijing will run out of reciprocal tariffs, there is no lack of lethal non-tariff retaliatory measures, including services.