George Soros, a US billionaire financier, recently published an article titled "Will Trump Sell Out the US on Huawei?" in the Wall Street Journal, hailing Donald Trump administration's Chinese policy is a great achievement. He wrote "[Trump] administration rightly declared Beijing a strategic rival" and "my interest in defeating China goes beyond US national interests." What could cause the billionaire's hostility towards China?
As one of the most renowned US financiers, Soros has made huge profits by finance speculation. It is said that he has made $44 billion through financial speculation, according to the BBC. In 1997 Asian Financial Crisis, Soros' currency trades thrown Thailand and Malaysia into economic turmoil. A year later, he led speculative attacks towards Hong Kong Market but failed because the city was backed by the Chinese central government which firmly protect the Hong Kong dollar and the Hang Seng Index from being affected.
In mainland China, the government's effective control over capital flows of hot money has checked the intention of US financial giants such as Soros to make profits by speculating in the Chinese financial market.
Soros seems to nurse a grudge against China because of his failure to make a fortune in the financial markets of both Hong Kong and mainland China. No wonder he highly praised Trump administration's hard-line policy towards China.
As a financial titan, Soros' words still carry weight in the US. As one of the most important figures of US financial field, he could affect US financial policies, even the US society. His article can be regarded as an endorsement for Trump's stringent China policy in US financial community.
Nevertheless, neither Soros nor Wall Street can jolt China. China has a sound financial system and effective management in some spheres such as foreign exchanges. China has adopted measures to prevent risks, ranging from exchange rate fluctuations to capital flows. These policy actions successfully prevent Western financiers from shorting the Chinese economy and the emergence of financial risks.
China has been making progress in opening up its financial sector. China hopes to engage in more cooperation with the US and other Western countries in the sector, which would also benefit the US.
US elites are aware of the pressures from China's rising economic capabilities and its derivative influence, especially after China initiated the Belt and Road Initiative.
These elites contend Beijing poses a threat to Washington and have tried to suppress and contain the development of the Chinese economy. It is not surprising that Soros, member of US financial elites, uttered such harsh remarks against the Chinese government.
What should China do in the face of such a bellicose stance emanating from the US?
First, China has to be confident. Although the US has tried hard to contain and crackdown on China's development in a variety of ways, it will be difficult for them to succeed. China has a large economy, maintains a good momentum of development and works cooperatively with neighboring countries and other major economies. China will integrate into the global economy in its way.
Second, China should guard against any attempt intended for the crackdown of the Chinese economy, and continue to criticize any rhetoric or actions that are not conducive to proceeding the maintenance of China-US economic and trade ties. It should also give repercussion when necessary.
Furthermore, some US right-wingers want an economic decoupling from China, which would be detrimental to both countries' economies and global development. The Chinese government doesn't want to make this happen. China is open to financial interactions with the US and welcomes the latter to enter the Chinese markets properly. This will create new economic connections between the two countries.
Copy Editor/Kang Sijun
Author: Su Hao is an adjunct senior fellow at the Charhar Institute and founding director of the Center for Strategic and Peace Studies at China Foreign Affairs University.
Source: Global Times, 2019-09-18
Original Link: http://www.globaltimes.cn/content/1160283.shtml