US Prioritizing National Security Over Trade With China

US Prioritizing National Security Over Trade With China
Taiwan President Tsai Ing-wen (C) arrives at the boarding gate of the international airport in Taoyuan on March 29, 2023. (Sam Yeh/AFP via Getty Images)
Antonio Graceffo
5/14/2023
Updated:
5/20/2023
0:00
Commentary
On May 1, 2023, the United States issued a warning to China regarding their “harassment and intimidation” of Philippine vessels, in the South China Sea. The move comes less than two weeks after Treasury Secretary Janet Yellen said that U.S. foreign policy relating to China will prioritize national security over trade. Yellen stated the United States would make decisions to ensure the national security of the United States and its allies, even if those actions have a negative economic impact.
She stressed that the United States welcomes cooperation and competition from China that would help both countries develop. However, she recognized that the United States and the world will only benefit from “a growing China that plays by international rules.” An expansionist China making its own rules is not beneficial to the world community.
Yellen’s message was consistent with Secretary of State Antony Blinken’s meeting with his counterpart Wang Yi, the head of the Chinese Communist Party’s (CCP) Foreign Affairs Commission, back in February. Despite the U.S.-China trade relationship being in disarray, Blinken warned Yi that Beijing would incur harsh penalties if they sent weapons to Russia. In March, CCP head Xi Jinping and Russian President Vladimir Putin reaffirmed their “no limits friendship.” It is unclear if these limits extend to weapons or not. But it seems that the United States is more willing to assert its demands with China even if it means worsening trade relations.
U.S.-China relations have hit a number of stumbling blocks already this year. In February, a Chinese spy balloon flew over the continental United States and many believe it was gathering intelligence on U.S. military bases. In the aftermath, Blinken’s upcoming trip to China was canceled. When the meeting was finally reinstated, Yi told Blinken that the U.S. reaction to the balloon was “hysterical and absurd.”
Shortly afterward, a senior State Department official told reporters that Beijing wanted to have it both ways. Xi claims to be the global arbiter of peace while also pledging support for Russia at war in Ukraine.
Air Force soldiers clear the ground in front of an armed F-16V fighter jet during a drill at Hualien Air Force base in Hualien County, Taiwan, on Aug. 17, 2022. (Sam Yeh/AFP via Getty Images)
Air Force soldiers clear the ground in front of an armed F-16V fighter jet during a drill at Hualien Air Force base in Hualien County, Taiwan, on Aug. 17, 2022. (Sam Yeh/AFP via Getty Images)
When Yellen extended U.S. priorities to ensuring the national security of its allies, she was likely including Taiwan—a nation whose threat from the CCP has grown tremendously over the past two decades. In 2005, the CCP passed a law giving Beijing the authority to use military action to annex Taiwan.
Four years ago, on the 40th anniversary of the Message to Compatriots in Taiwan, Xi spoke at the Great Hall of the People and said, “We make no promise to renounce the use of force and reserve the option of taking all necessary means.” He reaffirmed this stance last October in his opening speech at the Communist Party’s 20th party congress.
In February, President Joe Biden said that he was planning to quadruple the number of U.S. troops in Taiwan. About 200 U.S. soldiers are currently there as trainers and advisers and would make no significant difference in the event of an invasion. But the act of even deploying these troops is an important signal to the CCP that the United States will conduct its foreign policy as it sees fit irrespective of trade relations.
In March, the CCP reacted aggressively when it was reported that Taiwan President Tsai Ing-Wen would visit the United States. Unperturbed, the United States allowed Tsai to visit. While speaking in New York on March 30, Tsai said that relations with the United States are stronger than ever.

This visit was seen as pivotal because it came only days after Honduras switched its recognition from Taiwan to the CCP. Continued support from the United States is crucial to the island nation now only officially recognized by 13 countries.

The CCP’s Taiwan Affairs Office spokesperson Zhu Fenglian warned that Beijing would “take measures” if President Tsai was permitted to meet with U.S. Speaker McCarthy. The Chinese embassy in Washington D.C. also issued a statement saying that a McCarthy meeting would risk a “serious confrontation” between the U.S. and China.
In the end, the meeting between House Speaker McCarthy and President Tsai did take place on April 6. Two days later, The Chinese People’s Liberation Army (PLA) Eastern Theater Command encircled Taiwan as part of combat alert patrols and joint exercises which lasted until April 10.

Although U.S. policy on Taiwan is still one of strategic ambiguity, Biden has said on roughly four occasions that the U.S. would fight for Taiwan. Under the terms of the Arm Taiwan Act, the United States is not obligated to fight, but it promises to provide Taiwan with the means to defend itself.

Last month, Biden approved the sale of $619 million worth of arms to Taiwan. The U.S. military is calling for even more weapons for Taiwan. A senior Pentagon official testifying before the House Armed Service Committee on April 18 said that properly arming Taiwan was the key to deterring a PLA invasion.
Beyond supporting Taiwan, the United States is standing up to the CCP on numerous other fronts. Several states and the federal government are debating or have implemented bans against the social media app TikTok citing a national security threat. Additionally, Biden is expected to announce increased restrictions on U.S. investment in China.

U.S. representatives participated in the World Bank Spring Meetings where concerns were raised about China’s debt diplomacy along the Belt and Road Initiative (BRI). Between 2008 and 2021, Beijing spent $240 billion to bail out 22 countries that fell into a debt crisis because of BRI loans. Other countries and projects teeter on the brink of leaving Beijing with the decision of extending more loans or eating its losses. Either way, the local country and people will suffer.

As a whole, it seems that U.S. policy toward the CCP is moving toward prioritizing national security over trade. The question is how far are the White House and U.S. companies willing to go and whether that includes losing access to lucrative Chinese markets and inexpensive manufacturing.

Views expressed in this article are opinions of the author and do not necessarily reflect the views of The Epoch Times.
Antonio Graceffo, PhD, is a China economic analyst who has spent more than 20 years in Asia. Mr. Graceffo is a graduate of the Shanghai University of Sport, holds a China-MBA from Shanghai Jiaotong University, and currently studies national defense at American Military University. He is the author of “Beyond the Belt and Road: China’s Global Economic Expansion” (2019).
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