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.