China's Trade Barriers?

I saw the recent news that the US is complaining to the WTO about China's trade practices. Alngside the very same news item was this news item. A high-level business delegation from China was visiting the US to conduct deals worth tens of billions of dollars (as the New York Times puts it: a Spending Spree).

Coincidence? I don't know.

On its face value, the Chinese seem to have mastered the art of playing US against the US. On Capitol Hill, I am sure there a bunch of lobbyists engaged by US businesses trying to complain/erect more trade barriers against China. And there should be an equal bunch of lobbyists engaged other US businesses to ensure the US gets these lucrative business deals instead of any other country.

Who wins? I think politicos do, in the short term. In the long term, as long as the world economy shifts away from Western nations to Asian nations, we will see more and more of this happening. The real money and growth is in Asia. Complain and erect barriers to protect local businesses is good -- but it shouldn't be at the cost of losing access to lucrative and growing markets elsewhere.

And the Chinese know this. Very soon, the Indian will get a copy of this playbook as well. It would be interesting how the drama weaves.

(Speaking of drama, is this just a drama? What if China and the US have already planned on doing these business deals all along? And both knew a PR campaign to divert attention & shield the public outcry as these deals get done -- will help? If that is the case, a well timed "US is not happy with China's trade policies, and the US is complaining. Your government is on your side and is at work" makes good sense to the US locals. On the other hand, China can go back to their country and say "Complaints, schomplaints... Whatever... See, we got the deals we wanted anyway, so be happy, China. Your government is on your side and is at work.")