China will be able to develop systems that are different from the world: experts

The delivery driver, wearing a face mask, rode an electric bicycle on a street in Beijing’s Central Business District on July 16, 2020.

Wang Zhao | AFP | Getty Images

SINGAPORE – US-China “decoupling” will cost more, but that doesn’t mean Beijing won’t choose to build “mutually exclusive” systems from the rest of the world, an expert told CNBC this week.

Robert Daly, director of the Kissinger Institute at the Wilson Center in China, said there is a real threat to China and … the rest of the world is developing separate financial systems for things like international debt payments and trade payments. United States.

He told CNBC’s “Street Signs Asia” on Wednesday that China could also develop various technological systems. “If that happens, if you have mutually exclusive financial, economic as well as technological and digital systems, then you’re really talking about decoupling and China taking it to a significant degree alone.”

Beijing knows that the cost of decoupling could be higher for China, the US and the rest of the world. He said China does not welcome decoupling, but “will not back down”.

Dalલી said US President Donald Trump has made “maximum, extreme threats” during his tenure, but generally “retreats” after considering the consequences.

“Some people in the White House want to technically displace China and not want to supply it with any chips that could help build China’s broader power,” Daly said. “But they don’t want to bankrupt Qualcomm, they don’t want to hurt American farmers, who have been given 28 28 billion plus subsidies by American taxpayers because of the trade war.”

‘Deep distrust’

Still, he described the decaplining by the Trump administration as “more than campaign rhetoric.”

“I think it has that feature.” “It’s a tool to reassure American voters that they, President Trump, are looking for him and that he (the Democratic presidential candidate) is tougher on China than Biden.”

According to Reuters, Trump told supporters at a rally on Tuesday that “Jid Biden’s agenda is made in China,” while his own “agenda is made in the USA”, he also called Biden a “global salesman.”

But in addition to politics, “having a very close alignment with China is a really deep-seated distrust,” especially when it comes to rare earths, technological and medical or pharmaceutical equipment, he said. At least partial decoupling is a “very real” possibility in some of these areas.

Americans want to be more self-reliant and are definitely not bound by China, he added.

“That wish is real, it is permanent and if it meets us, it will continue somehow, even under President Biden.”