Headline News 16/01/2021

Headlines:

• US-China Trade War has Cost up to 245,000 US Jobs: Business Group Study

• Jewish State to Push Biden to Take it Easy on Saudi Arabia, UAE and Egypt

• New Strategy Towards US: Pakistan to Safeguard Mutual Interests

Details:

US-China Trade War has Cost up to 245,000 US Jobs: Business Group Study

U.S. President Donald Trump’s trade war with China has caused a peak loss of 245,000 U.S. jobs, but a gradual scaling back of tariffs on both sides would boost growth and lead to an additional 145,000 jobs by 2025, a study commissioned by the U.S.-China Business Council (USCBC) shows. The group, which represents major American companies doing business in China, said the study by Oxford Economics also includes an “escalation scenario” which estimates a significant decoupling of the world’s two largest economies could shrink U.S. GDP by $1.6 trillion over the next five years. This could result in 732,000 fewer U.S. jobs in 2022 and 320,000 fewer jobs by 2025, it said. The study was released just days before President-elect Joe Biden is set to take office and begin a major analysis of U.S. trade policy, including consultations with democratic allies over punitive U.S. tariffs imposed by Trump. Biden has said he plans no immediate changes to Trump’s tariffs, but said he will work with allies to pressure China to change its trade behavior. USCBC President Craig Allen, who has been supportive of Trump’s efforts to change China’s trade and technology transfer policies, said it was important that the group articulate the consequences of policy choices in the U.S.-China relationship. “In the case of the tariffs, it’s very important that we understand the full economic cost of these choices,” Allen told a press briefing. The study estimates that U.S. exports to China support 1.2 million American jobs and that Chinese multinational companies directly employ 197,000 Americans, while U.S. companies invested $105 billion in China in 2019. “With China forecast to drive around one-third of global growth over the next decade, maintaining market access to China is increasingly essential for U.S. businesses’ global success,” the study said. [Reuters].

So much for Trump’s America First rhetoric. Trump has incessantly misled his base on a variety of issues and job creation accruing from trade war with China is no different. Nevertheless, it is unlikely that Biden will change America’s fundamental direction with China. The dye has been cast, and the trade war will continue but the styles may change.

Jewish State to Push Biden to Take it Easy on Saudi Arabia, UAE and Egypt

The Jewish state plans to lobby the incoming Biden administration to avoid confrontations over human rights and other contentious issues with Saudi Arabia, the UAE and Egypt, senior Israeli defense officials have stated. President-elect Biden has promised to put human rights and democracy at the forefront of U.S. foreign policy, and he skipped over all three when placing phone calls to the leaders of 17 countries after his election victory. He was particularly critical of Saudi Arabia during the campaign over the war in Yemen and human rights issues. The Jewish state sees its security and intelligence relationships with the three countries as central to its strategy to counter Iran and an important pillar in regional security. Now, the Jewish state fears that Biden will not only seek a deal with Iran, but also cool relations with America's Arab partners. [Source: Axios]

There was a time when these countries lobbied America to put pressure on the Jewish state to stop atrocities against the Jewish state. Today, the Jewish state is doing the reverse to protect its allies from a possible policy change under the Biden administration.  And yet there are still those who believe that Saudi Arabia, Egypt and the UAE have the best interest of the people of Palestine at heart.

New Strategy Towards US: Pakistan to Safeguard Mutual Interests

Pakistan will pursue a pragmatic diplomatic strategy based on safeguarding mutual interests while dealing with the new US administration under President Joe Biden. The government has concluded initial deliberations for laying down outlines of the new strategy with message of respecting the dignity of each other in transacting two-way business. Well-placed diplomatic sources told The News Pakistan’s ambassador in the US Dr. Asad Majeed Khan, who is flying back to Washington after weeklong hectic consultations with the high-ups in Islamabad and Rawalpindi, has been tasked with conveying the sentiments of his government to Joe administration catering all spectrums of bilateral ties. The Afghan issue will continue to occupy prominence in the upcoming affairs to be taken up by Islamabad and Washington from the American perspective. Pakistan will assure that it would live up to the US expectations for bringing peace in the war-torn country, as its support for the peace process wouldn’t be remiss. Relations with India covering Kashmir dispute will figure prominently since India has been following an enhanced aggressive posturing towards Pakistan and Kashmir with certain irresponsible acts ever since New Delhi jumped in Washington’s lap during the last decade. Pakistan will welcome US role in settling disputes with India if the former expresses desire to play by maintaining dignity. It is understood that Pakistan’s close relationship with China would be a question bound to be raised by the new US government and it is unlikely that Pakistan would indicate any alteration in this regard since the relations have malice towards none but in the interest of the two, sources said. The US defence cooperation and economic relations will be the two areas where Pakistan would be interested to have further activation although Pakistan found acceleration in the areas in recent years, the sources said. [Source: News International]

What is billed as a new strategy is nothing more than a total capitulation of Pakistan’s sovereignty. Imran Khan’s government plans to invite America to solve both Afghanistan and Kashmir. Both problems in origin exist because America invaded Afghanistan and then supported Modi to tighten his grip over Kashmir. Only the re-establishment of a Khilafah Rashidah (rightly guided Caliphate) upon the method of Prophethood can solve these problems without Western interference or surrendering sovereignty to either India or the US.