Fri, 27 Jan 2017 09:53:42 +0000
By NATION REPORTER
CHINA has in a short time become the world’s second largest economy with a gross domestic product (GDP) at par with that of the United States and it is wrong for US President Donald Trump to alienate the Asian giant politically and economically, Alexander Chikwanda has warned.
Mr Chikwanda, the former Finance Minister, said China, with its huge population and ever rising purchasing power, was an attractive market for every country in the world, including the United States.
In his write-up captioned: ‘‘The Trump script anchored on over-simplifications’, Mr Chikwanda said there were several critical facets for the US to improve its relations with China.
He explained that one of the facets the US should consider was that China held nearly US$2 trillion in the United States government securities.
Mr Chikwanda said China had received more than its share of bashing by President Trump such as the raising of tariffs for Chinese imports into the US which he said was not entirely salutary.
He stated that many goods imported from China, just as the case of the Mexican imports, had significant content of American components, stating that low priced Chinese imports were of great benefit to American households and help tone down inflation.
“Americans have a streak of megalomania and it is tempting to regard the rest of the world as some backyard or appendage. The reality that Americans need to face is that the global power structure will be irreversibly polycentric.
‘‘China has, in a short time, become the world’s second economy and taking on China is not the most prudent, let alone expedient, thing for President Trump to do. China has received more than its share of bashing by the versatile President Trump,” Mr Chikwanda said.
He explained that although in dollar terms China’s GDP could be US$6.7 trillion less than that of the US, its GDP was at par with America when the purchasing power parity method of measurement was used.
Mr Chikwanda has predicted that in less than 10 years, China was likely to overtake the US as the biggest economy in the world with more than 1.5 billion consumers.
He said the world had many sleeping giants in the so-called emerging markets such as India which he said could create impetus to the global economy.
“America is critical to the world development process with its vast accumulation of technology and financial resources. Trump and his team need to streamline their agenda to help foster enhanced international cooperation. Trade wars and pulling out of trade treaties like North America Free Trade Area or the Trans Pacific Partnership is a backward step and a gross disservice to both America and the world,” Mr Chikwanda said.
Mr Chikwanda said President Trump had put together a team of people some of whom he said were a distinct success and that it was inconceivable that such a grouping of distinction would be ‘‘sycophants beyond redemption’’ competing to tell the US president what he wanted to hear.
