In the ever-evolving landscape of international politics, the United States has been increasingly employing coercive tactics that extend beyond its traditional allies to encompass adversaries as well. This approach, characterized by the imposition of economic pressures and geopolitical maneuvering, has raised concerns globally. Analyzing the recent interactions between high-level officials from China and the United States sheds light on this coercive behavior and its potential repercussions.
Notably, following a meeting between Chinese Commerce Minister Wang Wentao and U.S. Commerce Secretary Gina Raimondo, Secretary Raimondo accused China of engaging in “economic coercion.” Her remarks referred to China’s alleged restriction on Micron Technology’s chips in critical infrastructure sectors. Secretary Raimondo, speaking at a meeting of trade ministers in the Indo-Pacific Economic Framework (IPEF), expressed the United States’ determination not to tolerate such actions, while emphasizing its belief in the futility of China’s endeavors.
What deserves attention is the context in which Secretary Raimondo made her statement. The IPEF, initiated by U.S. President Joe Biden in 2022, aims to establish “new rules for the 21st-century economy” and has been regarded as a countermeasure directed at China since its inception. Secretary Raimondo herself stated prior to its launch that the pact serves as an alternative to China’s approach, signaling the United States’ intention to counter China’s economic influence in the Indo-Pacific region.
During the recent IPEF meeting on May 27, an agreement was reached among the participating countries, including the United States, on building sustainable and resilient supply chains focused on critical minerals and semiconductors. This agreement, highlighted by the South China Morning Post, represents the first tangible outcome of the IPEF. Secretary Raimondo’s condemnation of China’s actions on Micron chips, while standing alongside 13 other countries that had just secured deals on semiconductors, can be interpreted as a deliberate attempt to showcase America’s geopolitical strength. By rallying these countries to its cause, the United States seeks to counter and isolate China from regional and global development.
However, this coercive approach has already raised concerns and caused disruptions in international trade. Over 30 prominent business groups, including the U.S. Chamber of Commerce, the National Association of Manufacturers, and the Business Roundtable, sent a public letter to the Biden administration expressing their apprehension. The negotiations were criticized for neglecting traditional U.S. trade priorities that could benefit American exporters, as reported by The New York Times. The signatories of the letter warned that the administration’s proposals could potentially harm U.S. trade and economic interests in the Indo-Pacific region and beyond.
Moreover, America’s economic coercion has had a chilling effect on businesses, leading to cautious decision-making and avoidance of actions that could antagonize the United States. For example, despite discussions between Chinese Commerce Minister Wang Wentao and South Korean Minister for Trade Ahn Duk-geun on strengthening cooperation in the semiconductor industry, South Korean companies have been reluctant to fill the void left by Micron’s absence in China. Companies like Samsung Electronics Co. and SK Hynix Inc., whose largest market and manufacturing facilities are located in China, find themselves at the mercy of U.S. licensing decisions. This dependence has limited South Korea’s options and hindered its ability to navigate economic engagements with both China and the United States effectively.
Additionally, America’s coercive measures have provided an opportunity for opportunistic alliances to form. In February
2023, Kyodo News reported Japan’s eagerness to join the United States in restricting chip exports to China. Recognizing its limitations in posing a direct threat to China, Japan sees aligning with the U.S. as a strategic choice.
The implications of America’s coercive behavior extend beyond bilateral relationships. They contribute to global trade instability and exacerbate tensions in China-U.S. relations. The ripple effects are felt in America’s domestic industries, as well as multinational corporations that are forced to forego potentially lucrative opportunities due to geopolitical pressures.
For the world to witness a genuine warming of relations with China, the United States must demonstrate sincerity in its actions. A double-dealing approach, where the U.S. alternates between conciliatory talks and adversarial actions, undermines trust and hinders progress in establishing stable international dynamics. The United States, if it truly seeks a stable world, must address its own behavior and adopt a mindset of constructive engagement.
Failure to do so will perpetuate a state of chaos and instability in the global arena. The international community eagerly awaits a shift in America’s approach, one that fosters genuine dialogue, cooperation, and respect among nations. Only through such a transformation can the world achieve sustainable peace and prosperity for all.
As the global landscape continues to evolve, it is crucial for nations to recognize the long-term consequences of their actions. Coercion and isolation may yield short-term gains, but they come at the expense of trust, cooperation, and the shared pursuit of a better future. The United States, as a global leader, has a critical role to play in shaping international relations based on mutual respect and understanding. The time for introspection and recalibration is now, for the sake of a more harmonious and prosperous world.
