Monday, July 30, 2018

U.S. rejects joining China on their Silk Road initiative and instead seeks to create their own competitive Asian development project

In President Trump's pursuit of trying to Make America Great Again both domestically and abroad, it appears that in the realm of economics he wants to primarily go it alone.

Over the course of the last several months, President Trump has sought to take on Canada, Mexico, China, the EU, and even Russia when it comes to energy, trade, and tariffs.  But now here at the end of July, his administration is gunning for a bailiwick that Beijing has dominated for most of this decade.

Development in the Far East.

The US government is expanding its infrastructure development drive in the Asia-Pacific region using new investment programmes, amid rising anxiety in Washington about China’s aggressive overseas development policies. 
Announced by Secretary of State Mike Pompeo on Monday, the initiative comes following concerns about the Trump administration’s commitment to engaging with countries in the Indo-Pacific region. 
In response to China’s ambitious Belt and Road Initiative – a group of multibillion-dollar transport and power projects that Beijing has used to assert its influence in Asia and beyond – Pompeo’s “Indo-Pacific Economic Vision” will increase the financial support that the US government provides to countries in the region through a newly merged government agency, the US International Development Finance Corporation (USIDFC). – South China Morning Post
The saddest things regarding Trump's new East Asia policy is that China has on multiple occasions asked the U.S. to be a part of their Silk Road project, and also to become a high level member of the Asian Infrastructure and Investment Bank (AIIB)/  Yet each time they have been asked, the U.S. has rejected these overtures to instead continue on with their policies of coercion and economic sanctions to get their way. Additionally, the Trump administration also appears to be abandoning, or at the very least tabling his promise to initiate a major infrastructure development project here in the United States.

While globalism as a policy does little to help individuals or the world as a whole, joint cooperation between nations when it comes to trade and development is a win-win for everyone involved.  But unfortunately while the President's motives to Make America Great Again are to be lauded on the domestic side, choosing to challenge China in their own backyard will end up being an even greater folly than what has already transpired in the ongoing trade war.

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