‘Economic NATO’ plan floated to end Beijing’s bullying
A Group of 50 nations would be able to push back against China’s coercive trade tactics
An “Economic NATO” should be rolled out to counter China’s coercive trade tactics. The idea of a coalition, or Group of 50 “like-minded countries,” has been floated by the United States Ambassador to Japan, Rahm Emanuel.
By creating a “unified” front, the bloc would be able to push back against Beijing’s bullying and protect its industries from being wiped out by heavily subsidized Chinese exports.
“It’s not United States-China. It’s [the] United States with 50 countries where China stands alone because their actions created an opportunity for us to fill a void,” Emanuel, known as Washington’s unofficial chief China critic, told Politico this week.
“Having an Article 5 [guarantee like under NATO where ‘an attack on one is an attack on all,’ should be] embedded into an economic alliance. This will have its own deterrence,” he said, as reported by Politico’s Next China newsletter.
Strength in numbers:
- Emanuel, who was chief of staff during President Barack Obama’s administration, pointed out that a blueprint already exists.
- He highlighted the European Union’s “Anti-Coercion Instrument.”
- It came into force last year after EU member state Lithuania was bullied by China for supporting Taiwan.
China’s operating principle [is] power and might equals right.
Rahm Emanuel, the United States Ambassador to Japan
Delve deeper: Emanuel first fleshed out the “Economic NATO” strategy in a commentary, entitled “An alliance to counter China’s aggression” for The Wall Street Journal last week. The aim was to isolate Beijing economically.
Between the lines: “China’s operating principle – power and might equals right – is evident in its combative diplomacy, military aggression against neighbors, and economic coercion. These strategies, however, have backfired,” he wrote.
Big picture: Reaction from Beijing has been predictable. Guo Li, of the University of Shanghai for Science and Technology, wrote in the state-run Global Times that an “Economic NATO has no market in Asia.”
What was said: “Asia is not Europe. What Asian countries seek is peace and development, not confrontation and conflict. Therefore, an economic version of NATO may create a buzz, but it is unlikely to become a reality.” Guo Li said.
China Factor comment: President Xi Jinping has been in power for more than a decade and has bent the Communist Party of China to his will. Beijing’s only close allies are Russia, Iran, and North Korea. Symbols of authoritarianism.