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WTO not designed to state capitalism players like China

The USA is getting upset that China is beat it at its own game, world trade, global influence, designing a global order which suits the dominant power. But the complaint that China is competing unfairly (not on a level playing field), is a fair call. China is competing in the global rush to power, wealth and influence as a co-ordinated capitalist state, whereas in the developed world, it is the individual corporations who compete for world trade. Therefore the following article has some fair points:-

  • The result is that as trade ministers from the WTO's 164 members gathered in Buenos Aires on Sunday for their biennial conclave, they are confronting what many see as an accelerating existential crisis for the two decades-old body (WTO) and for the post-war trading system. And the US, the one-time guarantor of that architecture, is now leading the assault.

  • Administration officials argue the WTO has failed in its mandate to negotiate new rules for the global economy and locked the US into mismatched tariffs. Its procedures were never designed to cope with the brand of state capitalism that China has ridden to success for three decades, they say.

  • "Unfortunately, the World Trade Organisation is not equipped to deal with this problem," he ( Robert Lighthizer, Mr Trump's trade tsar) added. "We must find new ways to ensure that a market-based economy prevails."

However, it seems that China is seeking to play a "divide-and-conquer" strategy with the eveloped world on trade.

There is a very real risk that at some point, this arm-wrestle on trade between the developed world could become very disruptive to both trade and investments.

This discussion is very relevant to this previous blog

Todays AFR article is also found here:

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