March 5, 2020

Summing up the war of titans in 2019

By: Azhar Azam

*This is one of my opinion pieces (unedited) that first appeared in "The Express Tribune":
https://tribune.com.pk/story/2167382/6-summing-war-titans-2019/

At the start of 2019, nearly each and every official in Washington have thought – to be more precise – hoped that Beijing would not be able to withstand high economic growth rate and the fall down of second-largest economy of the world was just a matter of few months’ time over the throbbing US tariffs on Chinese goods.

In order to morph its instinct into reality, the US renewed its efforts to pose a rising China a threat to the world only to ensure its global supremacy. Throughout the year, America strove to gang up its regional allies to diversify its rancorous economic, political, diplomatic, trade, technology and military campaigns against China.

With trade war simmering in the background, the US launched a worldwide push against Chinese technology behemoth Huawei, labeled Beijing a currency manipulator, passed the controversial Hong Kong Human Rights and Democracy Bill, intensified its drive to encumber China’s growing defense capabilities that eroded “America’s military advantages” and panned Communist Party of China (CPC) for being “truly hostile to the United States.”

But as we entered into 2020, Beijing has demonstrated incredible dexterity to cope with its economic slowdown, domestic crisis, international trade and technology disputes and effectively repelled Washington-led crusade equipped with the arsenal of striking tariffs, fanning conflicts and imposing sanctions on the country’s tech giants.

Amid the tensed internal and external economic environment, China managed to pull a surprising GDP growth rate in 2019. Though the growth had slumped a touch, yet it was still at a notch of above 6% – attributable to its targeted reforms including the new Foreign Investment Law to be enacted from January 1 and would provide the foreign businesses the greater market access, guarantee intellectual property (IP) rights, proscribe forced technology transfer and allow level-playing field to domestic and international companies.

The structural changes have paid off well as about 95% of the Chinese were expected to be pulled out of poverty in 2019. Since some 10 million Chinese were lifted from extreme poverty in the ongoing year and nearly 12 million new jobs were also created in the first 10 months of 2019, China would virtually form a “Xiaokang” or moderately prosperous society in 2020. Latest data symbolized that China not only endured the downward pressure on its economy but was also moving forward with even stronger fortitude and belief.

Trump administration has largely relied on trade war to miff Chinese economic growth. But with the New Year started off with the signing of the “phase one” deal between Beijing and Washington – CPC has successfully bested the US-elicited damage, aimed at unsettling China’s and the global economic and trade system.

US technology war on Chinese firms is in tatters too and indeed has bolstered the competences and productivity of the native tech companies. Despite American restrictions, Huawei’s sale of 200 million of smartphones by October and 24.4% revenue growth in the first three quarters of 2019 was self-explanatory to the unbelievable depth in the Chinese technological advancement.

Huawei is building in confidence as well. After development of its indigenous softwares and components, it is marching ahead to replace Google apps such as mail, messaging, maps and payments with its Huawei Mobile Services (HMS). In a year of mass 5G adoption few days later, Huawei is set to transform China into the largest market of next-generation network by shipping 100 million 5G smartphones in domestic market.

On diplomatic front, the US continued to hoodwink the world in wake of the pretended China’s debt trap, regional domination and military buildup. Beijing sensibly offset Washington diplomatic assault and hosted Belt and Road Forum (BRF) and China International Import Expo (CIIE) to promote high quality cooperation with BRI countries and raise its imports from world respectively. Chinese President Xi Jingping also visited seven countries to improve Beijing’s standing in the international world.

China deactivated the US fabricated agenda about Beijing’s seeking strategic and military control in Asia-Pacific region. It orchestrated dialogue for a better Asia intended for mutual learning and growth for a shared future, conducted joint military drills with the regional countries and promoted the innovative concepts of mutual economic cooperation through RCEP and BRICS forums.

Xi, in fact, had intuited the looming threats to Beijing in the coming months at the beginning of 2019 and therefore warned the Chinese officials of “black swan” and “grey rhino” events, the unpredictable crisis or highly probable, high impact neglected problems.

His doubts soon materialized after riots wobbled Hong Kong in June on relatively a less consequential legislative issue to allow the transfer of fugitives among China, Hong Kong, Macau and Taiwan. Accordingly, the city’s GDP was tanked to -1.3% for 2019, the first ever annual decline since 2009 and would result in plunged per capita income, slashed business turnover, moderated tourist arrival of the residents, and consequently loss of employments to the residents.

Recalling that Washington has given hype to nearly every single event in Beijing during 2019 over a hope to sneak into the unity of Chinese government and people and infringe its domestic affairs, the Chinese overseers should be highly vigilant of the US disruptive tactics including redeployment of American troops from Afghanistan to Indo-Pacific.

President Xi’s advice to his fellow statesmen, to take all precautionary measures that could jeopardize China’s stability and reform, is as real as it was one year before. Via such organically coordinated, disciplined and tidy nationwide efforts, China can surely again overcome the daunting challenges to its economy, technology and sovereignty in 2020.