NEWS COMMENTARY LOOKS AT THE TRADE WAR: WHO HAS CHICKENED OUT? WHAT IS THE PLACE OF AFRICA IN ALL OF THESE?
Is there going to be a ceasefire any time too soon? I am talking about the simmering trade war between the two superpowers of the world: the USA and the Peoples’ Republic of China. What has started as a normal imposition of tariffs on goods and services by the two powerful nations has now escalated into a dogged, retaliatory punishment meted out to each other. But one may ask: what is the reason for all this ‘showmanship’ and the flagrant disregard for each other’s integrity? Why are these two nations doing what they are doing? Why is President Trump bent on punishing his communist counterpart by imposing unnecessary tariffs on imported goods and services coming from the second largest economy, China? These may be, but some of the few questions navigating the minds of curious followers and witnesses of the recent episode of the ever-increasing tension between the two nations. Well, personally, only one word keeps resonating in my mind – SUPREMACY. As it were, there has been this apparent friction between China and the US revolving around areas of financial dominance, science and technology, security and defence systems, access and control over smaller and developing nations and the ultimate quest for supremacy. These, amongst other factors, are some of the reasons fuelling a trade war that shows no signs of ending despite the grapevines and media outlets being rife with President Trump’s hint of a possible substantial cutdown on China’s export tariffs. At the moment, President Xi has retaliated in the same measure, vowed to leave no stone unturned, and has directed the shipment of rare earths to the US, to stop with immediate effect. These rare earths were mocked by the US as misnomers but turned out to be, indeed, largely owned, processed and refined by China. Global technology giants Space X, Tesla and other semi-conductor and automotive industries in the US heavily rely on these core minerals for manufacturing key technologies like the humanoid robots owned by Elon Musk. Similarly, American companies operating in key cities like Shanghai, Guangzhou, Beijing and even the US itself are directly bearing the brunt of these rather unfortunate directives from President Xi Jinping. These companies now have to go through the drudgery of acquiring licences to have access to these rare earths that are used to manufacture key components of their technologies. It is now 245% against 125% but the communist nation is fully ready to hit back at its arch rival. But how is the next phase of the war going to be like? Should we expect more tariffs from the two or should we expect a de-escalation as purported around? Is one of the two nations likely to back down and call for a truce, or adjourning to the negotiation table is the next line of action? Scott Bessent, the secretary to the US Treasury intimated there would not be any need for further tariffs as these would just put unnecessary stress on the two nations, straining the more, the already precarious ties existing between them. Within a little space of time, a lot of havoc have been wrecked on logistics and supply chains, and the hospitality and tourism sub-sectors have experienced sharp declines in revenue and services as a result of the trade war.
Meanwhile, Africa and other developing nations have had their fair share of the trade war having to grapple with tariffs imposed by Trump and the eventual removal of all forms of aids and assistance to beneficiary nations. On a more serious note, these happenings should send strong signals to African leaders about an imminent disaster if the continent refuses to act in earnest. Just very recently, three West African countries, namely; Niger, Mali and Burkina Faso, defected from the economic bloc, ECOWAS, to form what we call the Alliance of Sahel States (AES). The three nations are determined to make great strides in political and economic integration and hope to foster trade and economic growth among themselves. Post-Covid challenges have engendered a paradigm shift in trade and businesses across board. Aid and financial supports largely drawn from the largesse of wealthier nations, are on the decline. The trajectory has changed because every nation is yet reeling under the inimical spikes of COVID. With all these signs glaring at us as a continent, it is quite amazing that our leaders have not taken a cue from what is going on. Well, if they have rhetorically, then I am sorry to say that mere rhetoric would not bring any substantial results. We might as well, with all humility, quickly learn from the three junta-led nations of the AES and start acting on our accord with the aim of charting a successful path for financial and economic freedom. Africa! We are tired of the fine speeches yet no results. We are fed up with the incessant reliance on foreign aid, donor support and IMF. The citizenry is tired of organizing massive regional conferences, seminars and summits with the tax payers’ money which are yet to show any positive results. Citizens want to wake up one day and realize that the mystery behind the paradox – a continent well endowed with all kinds of natural resources and a plethora of opportunities yet heavily stricken with abject poverty – has been unraveled. The basic needs of life – food, shelter and clothing are still like albatrosses on our necks. The poorest of the poor are domiciled here in Africa with deteriorating health systems, scanty economic opportunities, stark poverty and a bleak future, especially for the youth. Indeed, our situation is dire and sad but I believe we can change the narrative and make this precious continent great and strong, and worth living for the masses of our people.
BY: THEOWISE EWOENAM KOFIKUMAH, A JOURNALIST.
Email: theowiseewoenam@gmail.com
One Response
That was a wonderful speech