In a somewhat bizarre move, since Washington’s shenanigans are usually not so openly paraded, the US administration seems to have resorted to paying countries to join its pressure campaign against the Chinese telecommunications company Huawei, and more broadly China.
On Tuesday, Washington offered to finance purchases by Brazilian telecom companies of equipment produced by non-Chinese companies, with officials of the US International Development Finance Corporation, the US Export-Import Bank and the National Security Council telling reporters that funding was available for this purpose.
That the supposed US trade delegation visiting Brazil is led by National Security Adviser Robert O’ Brien rather than US Trade Representative Robert Lighthizer is enough to give the game away. Although the latter made it crystal clear, saying that there is a China element “in everything that all of us do”, and Washington was “concerned” about Chinese investments in the country and wanted to counterbalance China’s influence by excluding Huawei and investing in Brazil’s steel, ethanol and sugar industries.
While Brazil seems willing to entrust its trade autonomy, if not its national security, to the US — for President Jair Bolsonaro’s own political needs rather than those of the nation — the US has a limited budget with which to lure other countries to its side, and other prospective beneficiaries of Washington’s largesse will now know that they can drive a hard bargain for their complicity.
Exim Bank officials said that the bank has 20 percent of its $135 billion portfolio available for commercial deals with companies that want to partner with the US as part of its so-called Program on China and Transformational Exports that it unveiled in July.
The program, which Exim Bank Chairman Kimberly A. Reed called “one of the most significant initiatives in Exim Bank’s 86-year history”, is nothing more than a fig leaf to authorize the administration to use government funds to lure other countries to join the US in trying to “neutralize” the competition from Chinese companies.
The cash-for-connivance policy is yet another sign of the US’ loss of confidence in both its leadership abilities and the competitiveness of its companies.
In a bitter irony, while Washington is so generously bribing other countries to jump on its anti-China bandwagon, local governments in the US are crying out for funding from the federal government to pay for much-needed infrastructure upgrading, particularly new telecom networks.
As the largest goods trade partner with more than 120 countries, China’s foreign trade was $4.74 trillion last year, among which nearly half was imports of agricultural products, raw materials and energy that are the main exports of the source countries.
Countries tempted to follow Brazil’s example should bear in mind that the US may not have the money or the market to replace China.
Although they might be tempted by the proffered greenbacks, they should weigh the gains and losses from accepting such let-me-pay-the-bill indentures as they will come with strings attached.
China Daily Editorial
