Five questions from Wang Yi

Mr Wang Yi, seasoned foreign minister and top diplomat of China is precisely the Chinese version of Sergei Lavrov of Russia whose pithy comments and persuasive arguments are noteworthy.  In a meeting held on March 7, 2025 on the side-lines of the Chinese Communist Party conference, Wang Yi asked five questions from USA. All are on geoeconmics.

Addressing the gathering of Communist Party delegates from across the country and foreign representatives and journalists he put forward the following five questions for which America has to reply. Here are the five bombshells:

1. Has US trade deficit widened or narrowed?

2. Has US manufacturing become more competitive or less?

3. Has US inflation gone down or up?

4. Has the American life got better or worse?

5. Finally, are the gains USA getting from the Tariff War justified?

 

Here are the replies America has to tell but would not say loudly:

1. The US trade deficit in goods and services reached a record high in 2024 amounting to US$ 131.4 Billion compared to US$ 98.1 Billion in 2023, due mainly to the surge of Chinese imports. America imported Chinese goods to the tune of US$c438.9 Billion last year.

 2. The shift towards service industry and financialization has eroded manufacturing competitiveness across the board with the exception in high-tech

3. Today the US inflation hovers around 3% compared to 0.7% a decade ago

4. The Social Progress Index (SPI) computes thus: The United States ranked 28th in social progress in 2024, compared to 16 in 2014. Incidentally, decline is manifest in quality of life, personal safety, health and environmental wellness, personal freedom and the sense of belonging.

5. What America gained from tariff war? Three countries Canada, Mexico and China account for more than 40% of US imports. On March 4, 2025 Trump signed an Executive Order to increase Tariff form 10% to 20% in a general format and 25% in specific format such as electric cars etc. Imposition of these tariff bands end up in increasing the consumer price within USA and does not affect the exporting countries. Moreover, due to this Executive Order US Treasury would gain surplus income of US$ 100 Billion. At the same time consumer price index would go up at-least 2% overall.

Instead of hiding behind trade war it is time for US leadership to improve the national economy and get a sense of balance in playing in the field of geoeconmics. 

 

Cheers!

  

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail: cosmicgems@gmail.com

Blog:   Business Strategist

 

 

Tag geoeconomics,