Tag: Trade War

For Whoever Controls Rare Minerals, Shall Inherit the Earth: US-China Trade War Chapter 2 Verse 1

Posted on By Moshi Isreal

For centuries, humankind has fought wars over oil, land and faith. The wars of today and perhaps the future will be about who controls the jewels of the earth, those rare earth minerals that power our age. They are in our chips, batteries, satellites, and missiles. For many countries, these elements power the very systems that guarantee their dominance. At the center of this struggle, stands the world’s largest economies, the United States and China. How this contest unfolds will depend not on bullying, threats and blackmail but on diplomacy, tact and compromise.

The second chapter of the U.S-China trade war kicked off with a bang. China fired a warning shot that has quite literally left the ground shaking. According to Aljazeera, China announced export controls on five more rare-earth metals- Holmium, erbium, thulium, europium and ytterbium adding to earlier restrictions on samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium. Alongside these, China also restricted the export of specialist technological equipment used to refine rare earth metals. Foreign entities will now have to obtain special government approvals if they wish to export any material that contain at least 0.1 percent heavy rare earth metals from China.

As expected, the move left Washington fuming. Donald Trump took to the socials to vent his frustration, threatening 100% tariffs on Chinese exports and new export controls on critical software. The self-styled ‘king of tariffs’ went even further by questioning the importance of his highly anticipated meeting with President Xi during the Asian Pacific Economic Cooperation Summit (APEC) in South Korea later this month. Global markets and policy makers are again on tenterhooks, bracing for another phase of the largely damaging trade war between the world’s largest economies.

In this fog of trade-war, it is important to separate facts from fiction. Despite the supposed truce between both countries, the United States has continued to blacklist Chinese firms and impose port fees on china-linked ships. The Trump administration has not shied away from referring to China as an enemy and demonizing it at every turn. Washington’s long-term objective is clear: to contain China and isolate it for the mere ‘crime’ of being too good a competitor. The U.S. cites its ‘national interests’ as justification for its actions against Beijing, half a world away. However, the question practically asks itself, if Washington can behave this way in the name of national security, what stops China from doing the same?

The export controls on rare earth minerals are an assertion of sovereignty and safeguarding national interests. Rare earth metals are not run-of-the mill goods of trade. They are the hidden backbone of advanced weaponry. These elements are critical in the production of fighter jets, Submarines, radar systems, missiles, drones, smart bombs and AI driven military systems. If anything, China has a stronger moral case: Its restrictions include exemptions for humanitarian and emergency uses such as medical and disaster relief.

The world must root for the Trump-Xi summit in South Korea to take place. The two most powerful leaders in the world need to sit down and talk. Dialogue, not ultimatums will resolve this contest. The United States should approach the table with some humility and respect for China’s national interests, something Beijing has consistently emphasized. For constructive international relations, respect for sovereignty, and the legitimate security concerns of other nations is an essential prerequisite. Trump’s approach of strong-arming countries into ‘deals’ will not work with China. Compromise grounded in mutual benefit is the only path forward. The President of the United States must have learned from his attempts to force India away from Russian oil that it simply does not work that way anymore. Instead, India has grown closer to China, a development that strengthens global stability but complicates Washington’s foreign policy objectives in the Indo-pacific.

China will approach this summit from a position of strength. It controls 90% of the world’s rare earth elements, dominates lithium-ion battery supply chains, and controls a vast network of mineral processing facilities that the West lacks both the capacity and the political will to replicate in the short term. Most importantly, Beijing has shown a willingness to engage in dialogue and compromise. The United States must come to terms with the fact that China is now a pace setter, a capable competitor unafraid to defend its national interests.

Perhaps the most significant outcome for the Global South and the rest of the world would be Washington’s recognition that Beijing has the potential to become an indispensable partner. This would open opportunities, to borrow from Trump’s signature turn of phrase “the likes of which the world has never seen before.” Now is a time for diplomacy and not war, for dialogue and not threats.

The Writer is a Senior Research Fellow at DWC.

 

 

Trump’s Trade Tariffs: A Gun That Turns On It’s Master

Posted on By Salim Abila Asuman

Image a tariff as a gun: and a man in the U.S. stands tall, calm and composed, with this polished gun in hand. He points it at his rivals, to intimidate, to demand respect, and to bend the room to his will. The barrel sunbeams under the light everyone watches. For a moment power seems to be his.

But then there is a truth about this gun, it is unpredictable. It jams, it misfires and sometimes in the tension of a standoff, it explodes backwards, tearing through the one who dared to wield it.

The U.S. government has recently drawn tariffs like weapons in a duel intended to shield domestic industries and frighten foreign competitors. But it forgets the recoil. Higher consumer prices, retaliatory trade wars, crippled exports, and suppressed supply chains these are the wreckages that fly back and dwell deep into the economy that pulls the trigger of a tariffs.

A tariff can look like strength. It can feel like control but history has shown us time and again that it is a dangerous tool, best admired from a distance because in the wrong hands, or even in the right ones but on the wrong day, it does not just miss the target. It turns and shots the shooter.

In 1930, amidst the Great Depression, the U.S. passed the Smoot-Hawley Tariff Act, slapping tariffs on over 20,000 imported goods to protect American jobs. Instead, it triggered a global trade war where countries retaliated, international trade collapsed by over 60% and American exports dried up. Far from a rescue plan, the Smoot-Hawley tariffs deepened the catastrophe it was meant to solve.

The U.S. has once more turned to a protectionism and still in the form of tariffs this time aimed at China again it is discovering that economic aggression invites economic retaliation.

The fact is that U.S. tariffs on Chinese goods do not hurt China as much as they hurt American shoppers. Several studies including from the Federal Reserve and Independent Economist in the past showed that more than 90% of tariffs costs were passed to U.S. consumers, driving up prices on essentials like electronics, machines, furniture and clothing.

China has responded to U.S. tariffs with its own hitting American agriculture, cars, and manufacturing. Because of this, exports from U.S. farmers and factory towns are going to take a serious hit and some industries are going to face double-digit losses in revenue.

Like most tariffs are, the U.S. tariffs on China are equally a short-term protection for vulnerable industries and shall stifle innovation by removing competitive pressure, instead of modernizing, industries in the U.S. are going to become dependent on political shielding.

Why China stands to win; unlike the U.S. China approaches trade wars with strategic discipline and long-term planning. As the biggest rival to the U.S in global trade, it had long anticipated the imposition of tariffs and other protectionist measures. In response, it began diversifying its trade routes and market dependances.

This strategic partnership included strengthening it’s economic ties in Africa and across parts of Asia regions that offer abundant resources and growing consumer bases and present a viable alternatives to the American market.

Through initiatives such as the Belt and Road Initiative (BRI) Beijin systematically built infrastructure, signed bilateral trade agreements, and invested in significant sectors in Africa and Asia that facilitate smoother trade flows, and as such mitigating the impact of western trade barriers.

This foresight in diversifying its trade portfolio came out of the fact that China had long observed the growing protectionist sentiment in the West. The 2018 U.S. tariffs which targeted over $250 billion worth of Chinese goods, confirmed its anticipation and it began preparing for a shift in global trade dynamics away from American dominance.

For instance, in Ethiopia the Addis-Ababa-Djibouti Railway funded by China links this African nation to the port of Djibouti. This therefore created a corridor that has become a vital artery for Ethiopian exports and Chinese imports.

The Lagos-Ibadan railway, funded by a 41.5 billion loan from Export-Import Bank is also part of it’s effort to secure reliable trade infrastructure and in exchange Nigeria remains a key supplier of crude oil to China.

In 2020, it signed the Regional Comprehensive Economic Partnership (RCEP), the world’s largest trade pact with 14 Asia-Pacific countries that included Japan, South Korea and ASEAN nations RCEP covers about a third of the world’s population and GDP.

Under the Belt and Road Initiative (BRI) the China-Pakistan Economic Corridor has received over $60 billion to build roads, railways, and to develop Gwadar Port. This initiative provides China with direct access to the Arabian sea while bypassing the Strait of Malacca, a strategic chokepoint often times controlled by the U.S.

Uganda has also significantly benefited from the Belt and Road Initiative since it joined the initiative. specially through major infrastructure and energy projects such as the Karuma and Isimba dams, the Entebbe–Kampala Expressway, the Osukuru Industrial Complex, the Kingfisher Oil Field and the East Africa Crude Oil Pipeline (EACOP).These projects have also made Uganda an artery for Uganda exports such as coffee and Chinese imports.

Countries in Africa and Asia that have partnered with China through BRI are likely to weather Trump’s tariffs better than others because their primary trade and infrastructure dependencies are now with China rather than the U.S. By restricting global trade and imposing unilateral tariffs, the U.S is pushing nations further into China’ embrace yet many of these nations were allies or part of the western development networks.

The irony is that Trump’s tariffs meant to punish China may end up punishing the future of America. Countries that once looked to the United States as a beacon of opportunity now see it as unreliable, unpredictable, and disinterested.

History will remember this moment not as China downfall, but as the turning point that confirmed a timeless truth: what does not kill you makes you stronger.

The author is a research fellow at the Sino-Uganda Research Centre.

Trump’s Economic McVeighism: Another Gamble with the Global Economy

Posted on By Musiime George

This month opened in typical Trump-fashion, with Washington imposing blanket tariffs on imports to the US. Following the announcement, markets from New York through Shanghai witnessed severe shockwaves.  Subsequently, the internet was awash with Trump supporters celebrating the effect particularly on the Shanghai and Hong Kong stock markets; praising Trump’s ingenuity. However, a week later, Washington announced a 90-day pause on all tariffs above 10% for imports from all territories except China. Be this as it may, experts have continued to rank Trump’s trade policy as the least friendly in 100 years.

Whereas some commentators argue that the pause was a response please to negotiate, reciprocal tariffs quickly set ‘Trump’s genius move’ and the US economy on a crash course. Moreover, the escalation involving China-the supplier of nearly 40% of American’s imports would mean that: either the 125% tariff gets transferred on to the American consumer or a reliance on alternative sources creates gaps in supply elsewhere. More importantly, the emergent supply deficits would likely create new market opportunities for China while the US risks forfeiting the 1.4 billion strong Chinese market. However, regardless of how this goes, Trump doesn’t seem to have a winning hand, at least not in the short term.

In my opinion, China-US trade tensions are not about China but rather the US’ strong belief in its legitimacy as the sole global power. However, the foundations of this belief ignore the fundamental fact that growth isn’t always infinite or uninterrupted. Indeed, it is for this simple reason that global dominance has always switched hands throughout history. Therefore, from this we can infer that China’s legitimate right to development has always been seen as a threat to this privileged position. Further, this is exacerbated by the US’ deteriorating economic footing seen from a $295 billion trade deficit and close to a trillion dollars of US debt to China. Without the significant progression through time, Trump might have tried the method the British used in 1833 or in 1856 using battleships to enforce “fair trade”; luckily these methods are buried 192 years deep.

The innovation, learning curve theory synergy; China’s engine of growth. Trump during his second state of the nation address in 2019 blamed China of ‘stealing American jobs’ and intellectual property. But in a highly interconnected and interdependent world, how is this to be avoided? Besides, this has always been the way of development. Trailblazers lowering entry barriers for those that follow. History shows that even before Robert fortune went to China disguised as a native to steal the secret of Chinese tea making, corporate espionage was a crucial stage on the path to modernisation. Indeed, Germany would never have replaced Britain as Europe’s industrial power early in the 20th century. Not even the American industrial revolution would have been as successful without both European immigrant capital, skills and knowhow. But more key in China’s rapid growth has been the learning curve theory and innovation; its ability to master cost efficient production.

Away from that, not even the 90-day pause on tariffs on certain countries targeted in Trump’s economic aggression changes the general outlook. In fact, Bloomberg economics projects the general US tariffs to only come down from 27% to about 24%. Despite the three-percentage point reduction, this will still be the highest in 100 years. Moreover, this does not take into account the 125% tariff on China hitherto the source of over 40% of all US imports. However, this can have any or a combination of a number of implications. In one scenario, the tariffs are endured but the products arrive at a much higher price with the America consumer having to bear the burden or, targeted territories seek alternative markets. However, when this happened in 1982 with Japan reducing car exports, the domestic automotive industry produced even less cars making it even harder for the ordinary American to own a car as a result of high prices.

The other possible outcome is that a move is made to readjust supply-chains which might require intensive investment in infrastructure, skills development and new technology in the short to medium term. Some experts are already expressing concerns that it could take decades for America to produce all it needs domestically. In the meantime, this certainly creates a supply deficit. On the other hand, if the US is to source these products from alternative sources, the deficit could potentially emerge elsewhere, likely creating a market opportunity for China given China’s relations with much of the developing world where this deficit is likely to manifest.

Until this point, the discussion has been about China and the US but what does Trump’s economic McVeighism mean for the rest of the world. Normally in such economic conflicts, when a major power faces off with a smaller nation, the outcome is more certain unlike when two major powers face off. In the former, the smaller nation loses badly but in the latter, the whole world suffers.  Moreover, when all other sorts of nations are tossed into the mix, the situation becomes even more complex and could have far reaching consequences. For example, as reciprocal tariff walls sprout in different targeted territories this phenomenon poses a significant threat not just to the US but also to global trade. This situation however seems to isolate the US signalling the potential for serious adversity for the domestic economy.

On the contrary, China has over the recent decades build strong and reliable logistic and infrastructure networks through the Belt and Road Initiative (BRI) cooperation. In addition, the Chinese have through innovation been able to master efficient production. These combined do not merely mean China’s supply-chains may not require much readjusting but rather making it more of a reorientation. The logistic and infrastructure network and efficient production methods also imply that China will be more ready to capitalize on any supply deficits should they occur, but what does this mean for the US?

White House data as of April 10 indicated that China’s share of total US imports had dropped sharply from 34% to just 13.4%. Moreover, with further hiking of the tariffs to 145%, one can expect this to regress even further. NVIDIA for example expects to take a 5.5 billion hit in charges on account of the limiting chip exports to China the company’s biggest market for AI chips. Indeed, economists concur that besides affecting American companies, consumers will also have to deal with soaring prices as firms pass on some all their extra costs not to mention the loss of jobs as was the case in 2018 when Trump first made this gamble. According to the WTO, the resulting contraction of bilateral trade between the world’s two biggest economies will certainly be felt in many places as well.

What is happening in the world today is a stark reminder of the potential damage that could arise at any time from the unchecked trade powers of the US president. President Trump’s free-range to gamble not just with the US domestic economy but also the entire world economy underscores the urgent need for resilient trade systems that will shield global trade when God’s diplomacy becomes weaponised like it is being used against China, Canada, Mexico and others. Further, whereas China has done significant work in this direction, there is a need for Africa and the global south to do more in this regard. Albeit not being proof against trade uncertainties, relative economic peace can be guaranteed through building resilient regional ecological supply systems that that are self-sufficient to counteract instances of economic McVeighism and bullying from without.

George Musiime is a research fellow at the Sino-Uganda Research Centre.

 

Trump’s Tariffs  Have Nothing to Do With a Fair World; It’s A Boomerang Trick to Contain China

Posted on By Abdurahim Ssemanda

The United States President, Donald Trump’s relentless habit of slapping tariffs on other countries has created what I can without doubt call “the politics of beam balance”—with Trump’s tariff situation on one hand and China’s President, Xi Jinping’s inclusivity on the other. In other words, Trump’s tariff situation lands us in a more direct situation of “protectionism” versus “inclusivity” in which the president of the U.S is hungry and longs for a solution that can at least cause equilibrium—a sigh of relief from China’s ever growing economic prowess as the world’s second largest economy which even threatens the United States’ long-term known superiority which politicians in Washington wrongly believe is a preserve of only the US!

Ever since the liberal French economist and businessman, Jean-Baptiste Say, coined the term “protectionism.” President Trump’s tariffs on other countries have given the term a fresh breath of practical existence with a great force even much more than the term had gained widespread use in the mid-20th century during heavy industrialization, trade agreements and economic nationalism.

However, from my angle of perspective, to break China’s economic backbone and strength, trade tariffs against China cannot be a viable solution but rather an economic self torment on Trump’s side. His tarifs which are in all design a gamble to contain China’s rise will certainly boomerang! China is not only the second-largest global power but also a mirror that plays a role in exposing the US indirectly across the globe. Whichever steps Trump takes against China, they leave the US isolated and bare. Secondly, it is not about just tariffs that China’s economic power can be realized. However, it requires a deep analysis of the core factors that made China achieve its position today. Such a core factor is inclusivity.

Just like the prominent American poet and novelist, Henry Wadsworth Longfellow, asserted that, The heights by great men reached and kept were not attained by sudden flight; but they, while their companions slept, were toiling upward in the night, China’s rise to global prominence should not be viewed as a sudden and an unexpected phenomenon. As such, no country should be tempted to believe that the same country’s prowess could be taken down suddenly by tariffs. There is a dire need to closely examine China’s foreign policy in which the major tenet is building a community of shared future for mankind, mutual respect and win-win cooperation with the rest of the world.

To realize this, a quick dive into China’s history clearly shows that from Deng Xiaoping’s economic reforms in the 1970s to Xi Jinping’s Belt and Road Initiative (BRI) today, China’s leadership has consistently pursued a long-term vision for the country’s global engagement and building a world where every country thrives with others in harmony rather than hegemony. This is the starting point of “inclusivity” which from the beginning was and is still deeply rooted in China’s steps to her development.

In just two years after the death of Chairman Mao, China’s Deng Xiaoping introduced a number of reforms but the most intriguing one among all was the Economic Liberalization reform. This was meant to revive China’s economy from shambles and shift it from centrally planned as it had been stagnated by the Gang of Four, to a market-oriented economy through the 1978 policy “Reform and Opening-Up.” Under this policy, Deng Xiaoping encouraged private enterprise, foreign investment and trade.

Soon after 1978, in his opening speech at the twelfth National Congress of the Communist Party of China on 1st September 1982, Deng Xiaoping emphasized the policy of “Opening to the outside world.” This was the kick-start to inclusivity. In his own words, he remarked that “We shall unswervingly follow a policy of opening to the outside world and increase our exchanges with foreign countries on the basis of equality and mutual benefit.” It is from this point that terms like “win-win” cooperation gained observance on the international scene especially with their roots traced not elsewhere but from Asia and China in particular. This is so simply because China started identifying itself with the rest of the world. It realized that it could peacefully and harmoniously develop and coexist with other nations.

China’s intensified spirit of inclusivity gained much momentum with Deng Xiaoping’s era. For example, on May 7th 1978, amidst the struggle to achieve four modernizations, Xiaoping remarked that, “Once we have accomplished the four modernizations and the national economy has expanded, our contributions to mankind, and especially to the Third World, will be greater. As a socialist country, China shall always belong to the Third World and shall never seek hegemony. This idea is understandable because China is still quite poor, and is therefore a Third World country in the real sense of the term. The question whether or not China will practice hegemony when it becomes more developed in the future. My friens, you are younger than I, so you will be able to see for yourselves what happens at the time. If it remains a socialist country, China will not practice hegemony and it will belong to the Third World. Should China become arrogant, however, act like an overlord and give orders to the world, it would no longer be considered a Third World country. Indeed, it would cease to be a socialist country.”

That enough, indicates how China had set itself to coexist with the world, identify itself with the rest parts of the world and foster development for all. Most especially, the development of Third World countries was given much attention. It is thus not surprising that by 1976, as poor as China was and economically staggering, the Tazara Railway—linking Dar es Salaam in Tanzania to Kapiri Mposhi in Zambia had been completed. This railway, one of China’s most iconic early projects in Africa, remained a focal point of Sino-Africa cooperation during 1982-1990.

In the most previous days, President Trump branded China “the biggest abuser of tariffs.” This is part of the reflection that he is realizing the impracticality of his tariffs. Moments before, we had witnessed China, Japan and South Korea reaching an agreement to jointly respond to US tariffs. This further reflects the spirit of inclusivity for which China has groomed in other countries it operates with.

It is worth noting that by 2024, Africa-China trade reached USD 300 billion while that of Africa-US hit USD 72 billion. This serves to reflect China as the biggest African trade partner over the US. This clearly shows that China is not relying on exports to the US as a sole consumer and market. It learned so quickly that the US is a camouflaging economy especially one that prides in tariffs and sanctions. As a result, China intensified her spirit of inclusivity and shifted her goal posts to other countries like in the Association of Southeast Asian Nations (ASEAN), in Africa and in the Middle East. Her foreign policy has heavily built on principles of mutual respect, amity, win-win cooperation and China has been a firm supporter of other countries’ development efforts emphasizing the need to support and build a community of shared future and prosperity for mankind.

The writer is a research fellow at the Development Watch Center.

 

Why America Will Lose Tariff War Against China

Posted on By Nnanda Kizito Sseruwagi

It is impossible to make any assessment of economic growth worldwide without coming face to face with the contribution of China, in any country’s economic growth. But America is also the world’s largest developed country. It is impossible to point at any nook or crevice of the world and not find American capital or financing doing something. Because of this, a tariff war between the world’s largest developing country, China, and the world’s largest developed country, the USA, would have effects resonating with every country in the world. They are two elephants. We are grass.

When Deng Xiaoping succeeded Hua Guofeng and opened up China to international trade in 1979, the volume of trade between China and the USA stood at a paltry US$2.5 billion. Recent figures for 2024 show that there has been an increase of that trade volume to US$688.3 billion! This expansion of trade between the two countries can never be said to have benefited only one country. I think Trump is blinded by sheer prejudice in the belief that China is ripping off America in their balance of trade.

America has increasingly grown to be a protectionist, yet it is the birthplace of free-market Mujahideens like Milton Friedman. It has in total imposed over US$500 billion of tariffs against China between 2018 and now. Given China’s high resolve to peacefully settle all kinds of conflicts, it invited the U.S. into several rounds of trade and economic negotiations to stabilize the two countries’ bilateral trade relations over the years, to no material success.

America, in its typical coercive American style, has recently passed the “America First Trade Policy Memorandum” in which they targeted China with a number of tariffs in complete usurpation of the principles of the market economy and multilateralism which henceforth were indistinguishable from America itself – American being the beacon of free-trade values.

The entire global supply chain is disrupted when America imposes such arbitrary trade restrictions on China. So, it is no longer just China’s problem, we all must be concerned. It is even false for Trump to claim China is ripping off the U.S. In fact, ever since the Bretton Woods system was established in 1944, it has been the U.S. ripping off the entire world because the American dollar was made the world’s primary reserve currency, pegged to gold and used as the standard for international trade and foreign exchange – a position that Americana has heedlessly exploited to its selfish benefit. It is this economic history that has given the U.S. significant economic leverage over other countries which have to hold dollars to stabilize their currencies, yet the U.S. can simply print dollars at no cost to settle its foreign debts and pay for material goods in international trade. America’s biggest export today is capital because it can literally print money to cover its budget deficits, effectively exporting inflation while other countries bear the cost of maintaining dollar reserves.

I do not understand why Trump or his economic and trade policy advisers seem to think that for America to be succeeding and something, its rivals must lose. It should be obvious to anyone that cooperation between China and the US does benefit both sides. And the opposite is true.

As already explained above, the volume of trade between the two countries has grown 275 times since 1979, reaching $688.28 billion in 2024.

It is difficult if not impossible to find any ratio of trade relations between the two nations where the U.S. does not benefit more than China. And this is why I argue that America stands to lose the tariff war. Whereas the US is China’s largest goods export destination, it is also the second-largest source of imports. Therefore, if China tits for tat for every increment of tariffs America makes, American citizens will either pay much more for basic goods or even fail to afford them at all. China is also the U.S.’s third-largest export destination. This means American companies will find it crazy expensive to export goods and services to one of their largest markets. Besides, America’s exports to China have been increasing faster than their exports to any other country in the world, because of China’s purchasing power.

According to UN figures, in 2024, America exported US$143.55 billion worth of goods to China, representing a 648.4 percent increase from US$19.18 billion in 2001. Additionally, this exceeded its overall export growth of 183.1 percent during the same period. China is also the largest export market for US soybeans and cotton, the second-largest export market for integrated circuits and coal, and the third-largest export market for medical devices, liquefied petroleum gas, and automobiles.

This aerial view shows the Port of Baltimore on April 10, 2025, in Baltimore, Maryland. US President Donald Trump’s 10 percent tariff for almost all countries except China will likely remain in place going forward, his top economic advisor Kevin Hassett said Thursday. Jim Watson/AFP/Getty Images

According to the US Department of Commerce (USDOC), the American service industry is also highly dependent on the two-way trade in services with China. Between 2001 and 2023, China-US services trade expanded over seven times from US$8.95 billion to US$66.86 billion. In 2023 alone, the U.S. registered a surplus of US$26.57 billion in service trade with China, highlighting a significant advantage for the U.S.

Into the bargain, in 2022, American-owned enterprises in China earned total revenue worth US$490.52 billion, significantly exceeding the US$78.64 billion in sales revenue generated by Chinese-owned enterprises in the U.S. The gap of US$411.88 billion critically underscores the profound advantage of American enterprises in international trade, even against a strong economy like China. The number of trade areas which can be cited as examples to show how America benefits more than China under free trade are countless. The amounts involved are enormous. Doesn’t Trump know this?

It would therefore be foolhardy for Trump to brazenly sideline China economically through imposing crazy tariffs. Over 10 American insurance companies have established subsidiaries in China. American financial institutions, such as Goldman Sachs, American Express, Bank of America, and MetLife, have all invested substantially in Chinese financial institutions. Trump seems to either lack the knowledge or arbitrarily disregard the fact that the trade balance between China and the US is not a malicious creation of China. Instead, it is an independent result of structural factors in the US economy and the natural comparative advantages and international division of labor between it and China.

The writer is a senior research fellow at the Development Watch Center.

Trump’s Tariffs Against China: A Threat To Countries’ Legitimate  Development Rights

Posted on By Allawi Ssemanda

For almost four months now, the Trump administration has arguably rattled global trade, economists, shocked business executives and set off heated exchanges with not only the world’s second largest economy – China, but also US’s largest trading partners and allies like Canada and Mexico.

While economists and corporate executives expressed concerns that such shift in Washington’s trade policy was a gamble with potential of causing a ricochets in the global economy, Trump appeared unbothered, selling his tariffs policy with celebratory tone calling tariffs “the greatest thing ever invented,” as he branded the day he announced his now paused tariffs a “liberation day.” “This is one of the most important days, in my opinion, in American history,” noted Trump as he announced imposing a now paused 10% universal tariff on all imported foreign goods in addition to “reciprocal tariffs” on several countries he claims have always “cheated” America.

While he later announced that he was pausing his tariffs for 90 days to allow negotiations, he maintained 145% tariffs on Chinese goods prompting Beijing to announced retaliatory tariffs of 125% onto US goods.

Also, Beijing made its position clear, strongly condemning these tariffs arguing they “severely infringes upon the legitimate rights and interests of nations, severely violates World Trade Organisation (WTO) rules, severely harms the rules-based multilateral trading system, and severely disrupts the stability of the global economic order.”

Further, Beijing noted that the U.S opting to use “tariffs as a tool of extreme pressure for selfish gain is a textbook example of unilateralism, protectionism, and economic coercion.” This, China maintains “violate basic economic laws and market principles, disregard the balance of interests reached through multilateral trade negotiations, and ignore the fact that the US has long reaped substantial benefits from international trade.”

While Trump argues that the US has been “unfairly” treated and “cheated” by other countries, many analysts contend that the tariff man’s main intention is to advance his protectionists agenda which he argues will help revive domestic manufacturing with possibility of re-shoring what he describes as American jobs.

If critically analysed, while Trump claims his tariffs marks  “the beginning of making America rich again,” many economists contend his unorthodox policies will harm global trade supply and also hurt the American economy. Indeed, Larry Summers, treasury secretary under Bill Clinton, branded Trump’s  tariffs “a self-inflicted supply shock.” “This is a self-inflicted wound to the American economy. I’d expect inflation over the next three or four months to be higher as a consequence, because the price level has to go up when you put a levy on goods that people are buying,” stressed Summers. It is not surprising the Wall Street Journal’s editorial described Trump’s tariff policies as the ‘dumbest trade war in history.’

A clear analysis of  Trump’s tariffs makes one thing clear; he wrongfully thinks the US can thrive on her own and that Washington has nothing to gain from global trade. This partly explains why “tariff man’s” administration is insisting on pursuing “American Exceptionalim” and isolation. President Trump ignores the fact that in today’s global village, it is nearly impossible for any single country to embrace isolation policies and succeed without hurting itself.  The Wall Street Journal’s editorial brings this better; “Mr Trump sometimes sounds as if the US shouldn’t import anything at all, that America can be a perfectly closed economy making everything at home. “This is called autarky, and it isn’t the world we live in, or one that we should want to live in, as Mr Trump may soon find out.

The US is one of the main arctetures of the current international economic and trade order and so should embrace the rules entirely other than unilaterally opting to place American interests above the common good of the international community. As China noted in their position regarding Trump’s tariffs, “economic globalisation is an inevitable path for the development of human society. The multilateral trade system, with the WTO at its core and based on rules, has made important contributions to the development of global trade, economic growth, and sustainable development.”

China and some analysts believe Trump’s use of tariffs targeting China is due to Trump’s desire to “counter” China’s economic progress which the Trump administration sees as a threat to the US’s assumed right to dominate the world. Rightly so, China contends by targeting its trade with tariffs, the US is violating WATO rules which Beijing notes undermines the multilateral trading system.

Analysing 1st Trump Administration China-targeted tariffs, a study by the Cato Institute, an American libertarian think tank found that the US’s use of tariffs targeting Chinese trade violated  WTO rules. It further revealed that while Chinese companies were most affected, even American’s citizens were affected as China responded to the Trump administration’s trade tariffs with reciprocal tariffs. The study “Unfair Trade or Unfair Protection? The Evolution and Abuse of Section 301” contends that the laws Trump cites to impose tariffs on other countries “grants the executive branch far too much discretion in defining an actionable foreign trade practice” which may be exploited for political reasons – it allows American President to safeguard America’s trade interests by remedying any “act, policy, or practice of a foreign country [that] is unreasonable or discriminatory and burdens or restricts United States commerce.”

In light of this, as China stated in their position on Trump’s tariffs, “development is a universal right of all nations, not the privilege of a few. There are no winners in trade wars or tariff wars. All countries must uphold genuine multilateralism, jointly oppose all forms of unilateralism and protectionism, safeguard the international system…”

The opposite is disastrous because the use of tariffs to counter  China does not only hinder legitimate development rights of the Chinese people but the entire global south population, especially Africa  whose countries’ both social and economic development have been realized as a result of China’s economic development and Beijing’s selfless policy of building a community of shared future.

Those who can should remind president Trump that, the world needs win-win cooperation and justice, not America’s hegemony!

Allawi Ssemanda is a Senior Research Fellow, Development Watch Centre.

Trump’s Tariffs: As China Retaliates, The World Has Refused To Bend The Knee

Posted on By Alan Collins Mpewo

Trump’s first weeks in office for his administration’s second term have not been short of interesting news. To his critics he has proved right, and to the U.S allies, he has shocked them. In fact jokes have been filling media platforms, of the tariffs that were slapped on almost the entire world. His administration has recently imposed tariffs on countries’ products entering the U.S market, that it all seems like the U.S has been having it that bad to reckon. To make America great again – either you bend towards our interests or you will be purged. China might be the greatest victim of the levied tariffs. Trump in his first term as U.S president imposed tariffs of over 20% on select Chinese products into the U.S, tariffs that were maintained by the Biden administration. From January to April 2025, the US trade-weighted average tariff rose from 2% to an estimated 24%, the highest level in over a century. Trump escalated an ongoing trade war with China, raising baseline tariffs on Chinese imports to an effective 145% after April 9, 2025.

Explaining that “the US’s imposition of abnormally high tariffs on China seriously violates international trade rules, basic economic laws and common sense,” China reciprocated announcing it was raising tariffs on all United States goods to 125 percent.

The global south countries have been no exception, with a few mentions such as Zambia, Lesotho, Zimbabwe, Mauritius, South Africa, Kenya, and many more. The intention according to the White House media outlets have been to level ground where USA was facing unfair trading terms. The state of affairs led shortly to panic especially in the stocks markets and as noted by numerous economists, JP Morgan Chase warned of possible likelihood of steep recession. But it was all resolute of the Trump administration that be damned, dear world, we are taking back what is ‘rightly’ ours. Long term allies affected. Alliances broken. Panic caused. All in a bid to not only cause alarm and show strategic strength, but to push the countries on whom tariffs were imposed into negotiations, bending the knee towards the U.S, and put the rest on notice of what might happen in future should they not adhere to the U.S terms as they come.

Many years and efforts of diplomacy put to a drain. Diplomacy is expensive. World histories are littered with case examples. But one event can change the course. The European Union had learnt so for decades, and now with a new blow, it still learns of the inadequacies presented from its leniency to U.S supremacy. The results? Now the E.U is realigning its interests. Strange times. China’s reaction does not come off as shocking. Neither does the imposition of stiff tariffs on its products. China equally issued fitting tariffs on US products entering the China market and a limit to access of some rare earth materials, with U.S and Ukraine’s rare earth deal gaining disruptions on possibilities of success. The Canadian Premier also responded in equal measure as the U.S did. And by day, the list of those imposing similar or worse tariffs keeps growing.

In an official response, China stated (among others) in a communique, “by taking such action, the United States defies the fundamental laws of economics and market principles, disregards the balanced outcomes achieved through multilateral trade negotiations,… and weaponizes tariffs to exert maximum pressure for selfish interests – a typical act of unilateralism, protectionism and economic bullying. Under the guise of “reciprocity” and “fairness,” the US is playing a zero-sum game to pursue in essence “America First” and “American exceptionalism.” It attempts to exploit tariffs to subvert the existing international economic and trade order, put U.S. interests above the common good of the international community, and advance U.S. hegemonic ambitions at the cost of the legitimate interests of all countries.” Spot on, because as the communique rightly noted, the World Trade Organisation approach to international trading with a rules based trade system was introduced to ensure balanced economic benefits for all world players. Fair trading and not economic bullying.

But the world has refused to bend the knee. For the global south, with incidents like the suspension of many African countries from AGOA, Uganda inclusive, has opened doors to new diplomacy and alliances. It goes without surprise as to why most countries in the global south are turning their choice of partnership to the East. To them, the US is no longer to be regarded as the decision making commander on all world affairs, or the compass that determines how affairs should run in each country. The window keeps getting opened to new allies, differently this time round, with allies that have some fabric of respect to autonomy and independence in determining internal politics and affairs – a lacking factor with U.S alliance. With the growing tensions, the U.S days off reaping off heaven are reducing. This was made strategically with its withdraw from global commitments under the World Health Organization, International Criminal Court, and other United Nations parastatals.

The defiance has grown, dissent increased, and realities are clearer. To re-echo Kissinger’s quote, “To be an enemy of the U.S is dangerous. But to be a friend of the U.S is fatal.” A country that has run its foreign relations in such ways is not one to keep close. The allies have until this year opened their eyes wider. For Africa, it has been a point of sheer exploitation. From rumored regime change covert missions, to looting of minerals, and a growing lack of boundaries on the extent of meddling by Western powers, the ascension of the East – specifically China – as a parallel competing economy has been a blessing to the global south with alternative implementation of foreign policy and respect of autonomy. A growing admiration of opposition from an ally showcasing the possibilities that lie in concerted neglect of unfair global dominance. What is certain is that the global south will survive and whereas the economic disruptions will cause discomfort, more power lies ahead in turning away from full alliance with the U.S. All thankfully to Trump’s administration.

Alan Collins Mpewo, Senior Research Fellow, Development Watch Centre.

US Trade Tariffs on China and Vietnam Overestimate American Bargaining Power

Posted on By Ernest Talwana

As of Wednesday 2nd April, 2025, the American President, Donald.J. Trump announced tariffs globally against countries he accuses of benefitting off what he calls American clemency and the ineptitude of the previous administration. In his attempt to usher in a “Golden Age for America” he has announced a broad range of tariffs with particular force being applied to China and Vietnam who have been slapped with 34% and 46% respectively in “discounted reciprocal tariffs. Of worthy note is Cambodia who has equally been hit with a 49% tariff. It should be noted that these tariffs aren’t actually based on actual existent tariffs by said nations but trade deficits divided by actual imports as seen in World Trade Organisation data.

These tariffs are clearly meant to pull American manufacturers utilising low tax and low labour cost jurisdictions to maximise output away from South East Asia to invest in domestic manufacturing and create local jobs as promised by Trump on the campaign trail.

However, none of these promises consider the reality that American manufacturing is often costly as compared to international manufacturing due to higher labour costs in the USA and taxation that pushes American companies to manufacture in South East Asia.

Imagine an American company, let’s call it “TreadsCo,” that makes sneakers. In the U.S., they’d have to pay workers at least $15 an hour (or more, depending on the state) to stitch the shoes, assemble the soles, and package them. That’s because of minimum wage laws and higher living costs. Plus, they’d deal with expensive rent for a factory, strict environmental rules that add costs (like waste disposal fees), and taxes that take a bigger bite out of profits.

Now, picture TreadsCo setting up in Vietnam. There, they might pay workers $5 to $8 an hour because wages are much lower, tied to the local cost of living. The factory rent is cheaper—maybe a tenth of what it’d cost in a U.S. city—and Vietnam’s government offers tax breaks to attract foreign companies. On top of that, regulations on things like emissions or labor conditions are looser, so TreadsCo spends less on compliance. Even after shipping the sneakers back to the U.S., the total cost per pair could drop from, say, $45 to make in the U.S. to $17 in Vietnam. That’s a big savings, especially when they’re churning out millions of pairs to sell at stores like Walmart or Costco.

So, for TreadsCo, Vietnam’s lower labor costs, cheaper facilities, and friendlier business rules make it a no-brainer to manufacture there instead of at home.

Companies cannot abruptly disrupt supply and production chains from which they greatly benefit in terms of reduced cost and therefore, the end consumer carries the increased cost that the manufacturer incurs in tariff barriers.

Trump sees himself embodying the late 19th Century President, McKinley who famously placed wide ranging tariffs on international trade which favoured a nascent industrialising American economy but ignores modern day contexts.

Even McKinley, a pioneer of American protectionism, realized later in his Presidency that high tariffs weren’t perfect. In 1901, he started pushing for trade deals to lower some tariffs and boost exports. He got assassinated before he could do much, but it shows he saw limits. Trump, though, seems all-in on tariffs without that flexibility(premised on a faux sense of American global domination) which could box him in if things go south.

Trump’s McKinley-style protectionism might sound like a bold “America First” move, but it’s a gamble. It will jack up prices, shock and agitate trade partners, and not deliver the job boom he promises—all while ignoring how much the world has changed since 1890. It’s like trying to use a horse and cart fix in a rocket-ship age (which equally relies on global supply chains to acquire rare earth metals like neodymium used to make particular magnets from states like China).

Nations like China and Vietnam can very much rely on their own trade ecosystems to maintain robust trade. The USA cannot simply push them into a position that favours the USA. According to Nikkei Asia and Statista.com, China’s trade with Southeast Asia (ASEAN) surpasses its trade with the US. In 2022, China-ASEAN goods trade reached $722 billion, accounting for nearly one-fifth of ASEAN’s global trade. By 2023, Chinese exports to ASEAN were valued at $523.7 billion.

This dynamic shows a healthy interdependence amongst South East Asian economies outside US Trade.

Trump’s tariffs only hurt American consumers in the long-term who rely on goods produced by American companies that outsource some manufacturing components from China, Vietnam and Cambodia. This is especially in the textile and automotive industry.

If critically analysed, Trump’s use of tariffs as a weapon is not a smart move in a trade sense and will disrupt global chain supply on top of affecting the U.S itself with a risk of plunging it to a resccession. The Wall Street Journal editorial branded the move as “the Dumbest Trade War in History.” Thus, it can be argued that Trump overates the US’ position in the grand calculus of global trade with the only reality being a potentially high cost of living forthcoming for the ordinary American. To sum it up, perhaps quoting former Canadian Prime Minister Justin Trudeau response to Trump’s use of tariffs against countries can explain this; “it’s not in my habit to agree with the Wall Street Journal, but Donald, they point out that  even though you’re a very smart guy, this is a very dumb thing to do.”

The writer is a research fellow at the Development Watch Centre.

 

 

Trump’s Trade War Against China: It Has Nothing In It for Americans– Trump Does Not Care

Posted on By Joshua Kingdom

On Tuesday last week, a Trump 10% tariff increase on goods imported from China came in effect triggering an almost immediate response by the Chinese government that imposed several duties on United States produced commodities thereby reviving the US-China trade war.

President Trump’s insistence on doing things this way is puzzling because all signs show that the policy will not only not benefit his country but hurt it. In fact, it has started already. Following the announcements for example, stocks for tech giants Apple, Tesla, and Nvidia tanked. The projections for what is to come do not look good either; the Peterson Institute for International Economics estimates that low-income earning Americans (a constituency that overwhelmingly voted Republican last year) will see their household income reduce by 3.5% something that Goldman Sachs attributes to the expected increase in the price of consumer goods. Mark you, US-based producers are likely to take advantage of the overall market situation by equally hiking their products.

Sen. Elizabeth Warren speaks at a rally to protest the closing of the Consumer Financial Protection Bureau and the work-from-home order issued by CFPB Director Russell Vought outside its headquarters on February 10, 2025.  Photo Credit: Getty Images

We do not have to wait on the future though as this is not the first time that a Trump-led administration takes issue with Chinese products. If at all, these levies are one of his signature marks from the first that he appeared on the political scene. And sure enough, the outcome of his 2018 onslaught is no better than what I laid out above. The financial burden born thereof was met on consumers according to the Quarterly Journal of Economics, farmers that formerly benefited from the then $24billion trade with China went bankrupt, and at least 300, 000 jobs were lost. Overall, the economy saw a 0.3% GDP lag. As for the trade deficit with China, it stalled at $345 billion which is more or less what it was when the tariffs were first promised with the otherwise would have been difference going to other countries e.g. Japan, Britain, and South Korea rather than benefiting manufacturers in the USA.

Moreover, things can only get worse because whereas China has exhibited nothing but good faith up to now (including pointing out that trade wars have no winners), it is far better placed to take on the new United States administration more than ever if push comes to shove. For one thing, Beijing is no longer as reliant on Washington as it was back in 2016. Thanks to a host of agreements that it entered with countries across continents in the intervening years, China has become a main trading partner of at least 120 countries. No wonder, the Communist Party of China (CPC) was quick to retaliate this time, sending a message that nothing will come easy.

Examining the nature of the countermeasures that President Xi’s government adopted is worth the time too. In restricting the exportation of elements that modern technologies heavily rely on for instance, China made it more difficult for American based innovators to compete effectively moving forward. Consider Tungsten which is such a rare mineral and yet key to aerospace ventures, molybdenum that is embedded in jet engines, ruthenium which is essential in the making of chips resistors etc. Australian National University has confirmed this much.

It does not help things that the US President has taken to the offensive in regards to relations with countries that have been traditionally understood as his country’s allies risking self-destruction. We are already seeing this with Canada on whose goods he almost imposed a 25% tariff– the imposition could very well accrue should the ongoing negotiations fall apart. Donald Trump has confirmed that he is considering adopting similar stances towards the European Union as well. In contrast, China has previously demonstrated its willingness to stand in the place of Global leader if a vacuum surfaces. Once Washington halted World Health Organization funding in 2020 thus, the CPC stepped forward and took on more responsibility as the other big boy in the room.

Why then (one would rightly ask) is President Trump so adamant? Well, it goes back to the fact that all he cares about is plundering to his base. Having successfully swayed them into believing a gloom and doom narrative, he must now take on the protector mantle. It comes from an old playbook in which a politician projects genuine grievances of his people onto an “other”. In China’s case, it started as early as the days of initial candidate Trump. Ever since, without facts, he has continued to associate Beijing with distorted depictions including saying that the nation was guilty of “raping” America and of “the greatest theft in the history of the world”.

What is more about this alternative reality, is that facts do not matter. Instead, the end justifies the means and Trump has taken it to heart.

The writer is a research fellow at the Development Watch Centre 

Trump’s Trade Tariffs: Evidence of American Aggression and Unreliability

Posted on By Allawi Ssemanda

In what many described as not surprising but still shocking, on Monday 10th February, the President of the United States of America (U.S), Donald J. Trump announced that Washington was slapping 25% tariffs on all aluminium and steel imports accessing the U.S market.

Speaking from White House where he made the announcement, Trump reasoned these tariffs are meant to reshape international trade. Without facts, America’s whining “tariff man” claimed global trade is unfair to the U.S and American workers. He proclaimed that his unorthodox use of tariffs was “the greatest thing ever invented” as he boasted calling it “the beginning of making America rich again.”

Despite stressing that these tariffs will apply to “all countries with no exemptions, no exceptions,” scholars and analysts contend that Trump’s 25% tariffs will largely affect Washington’s immediate neighbours like Mexico and Canada. The American Iron and Steel Institute lists Canada, Brazil, Mexico and South Korea as America’s major sources of steel and aluminium products.

Canada and Mexico, both America’s closest neighbours and trading allies are already under Trump’s pressure with the leaders of the two countries having agreed with Trump to pause his 25% tariffs levy on Canada and Mexico for 30 days after last minutes negotiations with “tariff man.”

For China, her products entering into the U.S are already facing a 10% levy announced by Trump on February 10th. Beijing has since then reciprocated with a similar percentage levy onto U.S exports into China. Trump is already threatening with a round of reciprocal tariffs. Such reciprocal tariffs would follow 25% levys Trump announced on aluminum and steel products and his additional 10% levy on Chinese goods. Despite criticism by several analysts, Trump insists “the long-term it’s going to make our country a fortune.”

While Trump is describing his use of tariffs against other countries as “the greatest thing ever invented,” and calling it “the beginning of making America rich again,” if critically analysed, his tariffs are not only likely to create negative impacts to targeted countries but will equally hurt the American Economy.

This week’s Statisticts from The U.S Bureau of Labor Statisticts shows that wholesale prices in the U.S have already jumped by 3.5% while consumer prices rose by 3%! Projections for U.S economy bears no good news. Ernst and Young’s chief economist, Greg Daco contends that in 2025 alone, America’s Growth Domestic Product (GDP) is likely to contract by 1.5% and 2.1% in 2026 with inflation rising by about 0.7%.  A deep analysis of this gambling method means that in a typical Donald Trump style – projecting toughness and being wise, “tariff-man’s” use of  tariffs as many analysts argue is an own goal and recipe for slowing America’s economy and will increase inflation which will hurt the very people Trump claims wants to save by forcing companies to work in the U.S and create jobs as a way of dodging his tariffs.

While Trump claims tariffs are meant to safeguard the U.S from the so-called  drugs, illegal immigrants as he noted for the case of Mexico and Canada, and ending what he called unfair trade with China, analysing Trump’s speeches and remarks on these tariffs makes one thing clear. President Trump is an Isolationist who thinks the U.S can be a perfect closed economy. Of course, this is far from reality.  For example, while announcing 25% now paused tariffs on Canada and Mexico, Trump was categorical telling Americans “we don’t need the products they have. We have all the oil you need. We have all the trees you need, meaning the lumber.”

It is not surprising that the Wall Street Journal’s (WSJ) 31st January 2025 editorial entitled “The Dumbest Trade War in History” argued that Trump’s tariffs are “for no good reason” and that all reasons advanced by Trump “make no sense.”

From multinationalism perspective, weaponizing trade at a time when the world is faced with economic recovery challenges partly caused by the Covid19 pandemic, and aware that free trade and uninterrupted global chain supply is key for the world to realise United Nations’ agenda 2030, one can conclude that under President Trump, the U.S is now openly selfish and cannot be relied on as a responsible member of global community.

A sign that reads ‘Buy Canadian Instead’ is displayed on top of bottles at a B.C. Liquor Store, in Vancouver, on Feb. 2.Chris Helgren/Reuters

Whereas Trump maybe boasting with his dumbest trade war hopping to reshape global trade on his terms, the scars will not be felt by targeted countries alone but also his voters who as of now Trump seems not to care much about. They already voted for him and he will not be seeking another term. Again, with his 23rd Jan. 2016 “I could stand in the middle of Fifth Avenue and shoot somebody, and I wouldn’t lose any voters, OK?”, Trump knows his suppoters are fanatics who can simply sell lies and blame another country say China and accuse it for their suffering should his trade war effects be devastating to American final consumers as many analysts predict!

While for geopolitical reasons some war hawkers in Washington may argue that Trump’s tariffs will slow China’s economic growth, at the end, the U.S will lose more than China.  It is important to note while his rhetoric is more against China, Trump is also targeting America’s closest neigbours and trading partners like Canada and Mexico. The message from this is clear. As Bernard Lewis taught us, “it’s risky to be America’s enemy, but it can be fatal to be its friend.” With this, geopolitically, while the U.S is always driven by Washington’s libido dominad – a latin phrase for the desire to dominate others, with Trump’s tariffs targeting “all countries with no exemptions, no exceptions,” the beginning of the end of America’s hegemony is closer than ever. It is now clear than ever before that what matters to Washington is not how close you’re to them. It is not their so-called “our shared values, good governance or human rights or democracy” as they normally claim. It is simply America’s interests that takes  precedence. This idea can best be understood from the words of U.S’ founding father, George Washington who in his 1976 farewell speech observed that; “No nation is to be trusted farther than it is bound by interest; and no prudent statesman or politician will venture to depart from it…unless both [nations’] interests happen to be assimilated.” 

 The writer is a senior research fellow at the Development Watch Centre.