Evaluating United States and China Trade Policies in the Context of Beggar-Thy-Neighbour

The Trade War Landscape: United States vs. China

The ongoing United States and China trade war exemplifies how tariffs, export bans, and subsidies can encompass beggar-thy-neighbour tactics. Countries are increasingly prioritizing their own social and economic objectives, often at the expense of others. A deeper analysis reveals that not all policies inflict harm abroad, but those that do, such as China’s export restrictions, warrant scrutiny.

Understanding Beggar-Thy-Neighbour Policies

In the political and economic discourse surrounding this conflict, the concept of beggar-thy-neighbour first introduced by Joan Robinson refers to strategies benefiting one country at the cost of others. Such approaches can weaken other nations' competitive positions, raising questions about legitimacy and fairness in international trade.

Dissecting Key Policies

• Research And Development Subsidies: China’s support for R&D in high-tech sectors enhances global competitiveness but also adversely impacts the US economy.
• Export Ban on Rare Earths: This policy strictly exemplifies a beggar-thy-neighbour stance, as it elevates prices and limits access for foreign producers.

Legitimate Strategies or Self-Defeating?

While many policies could be deemed enriching rather than destructive, identifying truly harmful actions helps craft effective responses. The globalisation framework must evolve to allow space for healthy dialogues about the implications of tariffs and market interventions that respect fair competition.

Conclusion: A Path Forward

To alleviate trade tensions, the global community must distinguish between detrimental policies and those that foster growth. By focusing on true beggar-thy-neighbour strategies, international negotiations can steer towards productive discussions, enhancing collaborative economic outcomes.