SCMP: China-US rivalry on brink of becoming a ‘financial war’, former minister says
* Conflict will be characterised by Washington’s use of ‘long-arm jurisdiction’, such as blocking firms like Huawei and ZTE, Lou Jiwei tells forum in Beijing
* US has been ‘hijacked by nationalism and populism’ and is resorting to ‘bullying’, he says
The growing rivalry between China and the United States is at risk of becoming a “financial war”, a former Chinese finance minister said on Saturday.
Speaking at an industry forum in Beijing, Lou Jiwei, chairman of the foreign affairs committee of the Chinese People’s Political Consultative Conference (CPPCC) National Committee, said that despite the compromises the two countries were trying to reach on trade, the dispute was likely to roll over into other areas.
“The next step in the frictions between China and the United States is a financial war,” he said. “It is characterised by the use of long-arm jurisdiction, by various excuses to block specific enterprises, such as the bans on ZTE and Huawei.”
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WNU Editor: This is a conflict that China will lose. They do not have the international allies, resources, and financial structure to take on the U.S. and win. And using debt to gain leverage may work for China on smaller countries, the U.S. is a totally different situation.