How China can bust US Trade sanctions?

 In the free trade world, imposing sanctions on a country is basically a rebellion. America has piled up quite a number of sanctions lately over China. How should China respond: reciprocate in kind or do something else? Here is a piece of advice from Zhuge Liang: Adopt the Meng Huo Stratagem.

Shu Han was one of the three kingdoms in China during the third century and Zhuge Liang was the chancellor of the kingdom. As a master strategist he guided the kingdom to victory and progress. During this time a rebellion broke out in the Nanzhong region led by Meng Huo who had great following. Zhuge Liang outmanoeuvred him and captured him in the battle.

Zhuge Liang persuaded Meng Huo to give up the fight and be a loyal citizen. Meng Huo did not relent and said his people would never cease rebellion till they win. Instead of hanging Meng Huo, Zhuge Liang released him. But Meng Huo persisted in his rebellion and once again was captured and released. This process went on for seven times. At the end Meng saw the futility of his rebellion and declared:

“Seven times captured, seven times freed! Such a thing has never happened! Though I stand beyond the range of imperial grace, I am not utterly ignorant of ritual, of what propriety and honour require”. So said, he pledged fealty to the state of Shu Han, and ordered his men to surrender. Afterwards they became the bulwark of the Shu Han army.

Zhuge Liang succeeded because he used a stratagem that is bound to succeed at the end. Similarly China must adopt a business stratagem with two vectors;

1. She need to counter American sanctions not by imposing reciprocal ones but liberalize some areas where she can allow American businesses to enter and grow within China, of course with a caveat that these businesses mount pressure on US government to cease, postpone or neutralize existing sanction regime  

2. Extend cooperation in trade and technology with a 50:50 stake in capital outlay and market opening. Companies under this scheme would sell equally in America and China outside any domestic or countervailing sanctions.

 

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail:   cosmicgems@gmail.com

Blog:   Business Strategist