The sustained economic and political attack on China is revealing not China’s weakness, but its strength. The US is going all out to hobble and damage the Chinese economy. Whilst some of this is part of President Trump’s re-election campaign strategy, some of these efforts reflect the deeply held beliefs of people like the US Secretary of State Mike Pompeo. They see the relationships between the two countries as one of deep ideological struggle where co-existence is undesirable.

This thinking has a large impact on investment decisions. So, too, does the misplaced thinking that China’s economy can be damaged by a sustained attack on its export capacity and its economic interactions on a global scale.

China’s critics are mistaken in assuming that China’s continued economic growth depends largely on the maintenance of the global free-trade system and access to Western technology. After the 2008 global financial crisis, China has adapted its economy in five ways to boost domestic demand.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook