Contesting globalization in the rise of nationalism the case of us china trade conflict

VIETNAM NATIONAL UNIVERSITY, HANOI UNIVERSITY OF LANGUAGES AND INTERNATIONAL STUDIES FACULTY OF ENGLISH LANGUAGE TEACHER EDUCATION FACULTY OF LINGUISTICS & CULTURES OF ENGLISH SPEAKING COUNTRIES TRẦN CƠNG HỒN GRADUATION PAPER CONTESTING GLOBALIZATION IN THE RISE OF NATIONALISM: THE CASE OF US-CHINA TRADE CONFLICT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE OF BACHELOR OF ARTS Supervisor: Đặng Ngọc Sinh, PhD Course of Study: QH.2016 Student ID: 16040160 Ha Noi, 2020 ĐẠI HỌC QUỐC GIA HÀ NỘI TRƯỜNG ĐẠI HỌC NGOẠI NGỮ KHOA NGƠN NGỮ VÀ VĂN HỐ CÁC NƯỚC NÓI TIẾNG ANH KHOA SƯ PHẠM TIẾNG ANH TRẦN CƠNG HỒN KHỐ LUẬN TỐT NGHIỆP TỒN CẦU HỐ TRONG BỐI CẢNH CHỦ NGHĨA DÂN TỘC ĐANG LÊN: CÂU CHUYỆN CHIẾN TRANH THƯƠNG MẠI MỸ - TRUNG QUỐC Giảng viên hướng dẫn: TS Đặng Ngọc Sinh Khoá học: QH.2016.F1 Mã sinh viên: 16040160 Hà Nội - 2020 ACCEPTANCE PAGE I hereby state that I: Trần Cơng Hồn, QH2016.F1.E32, being a candidate for the degree of Bachelor of Arts, accept the requirements of the College relating to the retention and use of Bachelor’s Graduation Paper deposited in the library In terms of these conditions, I agree that the origin of my paper deposited in the library should be accessible for the purpose of study and research, in accordance with the normal conditions established by the librarian for the care, loan or reproduction of the paper Signature Date SUPERVISOR’S APPROVAL ii DEDICATION For my Father, who always believes that education can change this world iii ACKNOWLEDGEMENTS This thesis would have never existed without the amazing lectures in the Division of Country Studies, giving me the best support and encouragements for what I love and what I have trying to To my supervisor, Mr Đặng Ngọc Sinh, PhD for his priceless ideas and nonstop guidance To the Head of Division, Ms Phùng Hà Thanh, PhD for her inspiration and countless cares for me and all her students To my dearest friends in class 16E32 for your kindness and trust And to my family, where I am never abandoned ABSTRACT This case study examines globalization in the rise of nationalism via the scope of the events in the US-China trade war that started in 2017, yet the prediction of possible conflicts between those two nations might root from much earlier, due to a long-lasting history of economic cooperation and trade engagement between two countries The trade war has inflamed different impacts on the society and the world economy, even political or economic development pathways of any nations that are related may suffer as their participations in the world economic platform However, one of the public’s leading questions is how two superpowers have gone globalized or nationalist, to rebound upon each stage as the trade war’s escalation This thesis includes perceptions, understandings and explanations from the chosen events to be analyzed, namely the tariffs and the following changes of the global supply chain The study then concludes that globalization is changing, not ending The previous approaches to globalization and nationalism need to be reviewed in several ways The trade war itself has not ended, so the research around it still remains huge to be done to broaden understandings of international relations This experience to globalization and nationalism can partly contribute to the debate of the dominating movement is either globalization or nationalism TABLE OF CONTENTS CHAPTER 1: INTRODUCTION Background of the Study Research Problems and Questions Methodology Potential Significance Overview of the Chapters CHAPTER 2: GLOBALIZATION, NATIONALISM AND GLOBALIZATION IN NATIONALISM What is globalization? What is nationalism? O’Sullivan’s theory: The end of globalization 10 CHAPTER 3: THE TRADE WAR IN A GLOBALIZED WORLD 12 China in the Force of globalization 13 Huawei and “Made in China 2025” 13 Apple, Costco and Tesla in China: The globalized policies of China 20 “The Tariff Man” and America First 26 Chapter – Summary 33 CHAPTER 4: GLOBALIZATION IS CHANGING 34 US-Japan Trade Conflict Throw-back 35 New Coronavirus pandemic (2020) and the future of globalization 40 Chapter – Review 42 CHAPTER 5: CONCLUSION 44 REFERENCE 46 i LIST OF FIGURES Figure Costco opens its first store in Shanghai with fully crowded shoppers (He & Wang, 2019) 22 Figure Tesla's Giga Shanghai assembly line (Lambert, 2020) 24 Figure Tesla Chief Executive Elon Musk in the opening of Giga Shanghai on Jan 7th, 2020 (Whalen, 2020) 25 Figure Peak Pegasus loaded with 70.000 tons of soybean on board (Reuters, 2018) 28 Figure Annual US Trade Deficit with China (US Census Bureau) 30 Figure Chinese people trying to buy pork in a local supermarket (The Straits Times, 2020) 31 Figure US Agricultural Exports to China (USDA, 2018), as cited in Jones (2019) 32 Figure Japan's Economic Growth Rates (1956-2018) 36 Figure Japan's market shares of semiconductor 37 Figure 10 Currency movements between USD and RMB (Lee Y N., 2020) 37 Figure 11 USA and China GDP - PPP net (current international USD) (The World Bank, 2020) 39 Figure 12 Wuhan lightshow on the reopening day (Zhong & Wang, 2020) 40 Figure 13 Total active cases with Coronavirus in the US (from Worldometer) 41 ii CHAPTER 1: INTRODUCTION This chapter would like to provide fundamental materials about how the USChina trade war occurred, to locate the basis on globalization in the rise of nationalism and to introduce the research problems and questions, mode of inquiry and my theoretical perspectives, along with providing an overview of the research Background of the Study This research demonstrates my analysis of globalization presenting in the trade war in the rise of nationalism It is burdensome to conclude that globalization has disappeared in this time, because countries are currently cooperating, via both bilateral trading and multilateral trade agreements, such as North America Free Trade Agreement (NAFTA) and the recent Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) Apart from that, nationalism is witnessed in the case whenever nations have to face threats in their development, when nations prioritize their identities as independent nation-states to protect their countries from unwanted factors brought by globalization, mostly unstoppable trade deficit Accordingly, the trade conflicts between two superpowers have raised immeasurable awareness of the world’s modern politics and orders In addition, the US-China trade war could be considered the key event that could change the world order In that case, there is no absolutely secured solution to the problem when there is no absolute power, or an observable bipolar context, when the globe seems to move into the time of multilateralism (Friedberg, 2005) To prove this, Stiglitz (2017) wrote: “We have created a system of global governance without global government These institutions can help the world maintain an open yet regulated trading and financial system, even if the US withdraws into its shell, or decides to take actions which violate its obligations.” (p.444) Apparently, maintaining national interests in the conflicts is the first concern of any nations However, the process of globalization can be stated as the spread of global sourcing and sub-contracting (Arndt, 1997), bringing interdependence among nations when they cooperate, or when the multi-national companies (MNCs) international investments The World Trade Organization (WTO) has been formed to be a patron saint of international free trade, and has pursued common rules for nations The situation in the US is totally not brighter From a safe nest with several scattering infects, the US has quickly jumped to be the most affected nation by the virus, with more than 640000 active cases and 28000 deaths23 The number of active cases in the US has risen uncontrollably, 445 times higher in less than a month, just from March 19th, 2020 to April 15th, 2020 (See Figure 13), making the US economy lockdown just as what China had to with its own Figure 13 Total active cases with Coronavirus in the US (from Worldometer) Bad as it may be, along with the severe consequences in medical health, Coronavirus also strongly affects the economy because of the lockdowns It is true that “Money Never Stops24”, while the financial market is still working, the social demands not stop, and the rental fees and interest rate from banks are still coming, the world economy truly suffers It is accounted that governments allow stimulus equating to USD 5000 billion to support the economy from collapse, and President Trump signed a stimulus of USD 2000 billion only to aid the American economy through the severe lockdown (Pramuk, 2020) It could be off topic to discuss how governments are trying to boost their economies Within the scope of this topic, only the globalization and nationalism affairs will be investigated 23 The numbers from Worldometer, retrieved on April 15th, 2020 at https://www.worldometers.info/coronavirus/country/us/ 24 A name of a song 41 Chinese Nationalism prioritized humanity (Yu B , 1996), so Chinese government tried to force down the disease as fast as possible and they did succeed China now has become the safest place in the world, yet they used to be the main battle field of Coronavirus On the other hand, Chinese economy witness severe impacts, with at least million jobs lost in February and March, 2020 (Cheng, 2020), and foreign companies in the US had to shut down due to the government request (Cheng, 2020) Chinese almost isolated themselves from the world, refusing helps from World Health Organization and the US government (McNeil & Kanno-Youngs, 2020), with the golden aim is to protect Chinese people and restart the economy as soon as possible It is the isolation of China that makes it protected from outside infectious threats and help the country start their normal daily life quickly Chan & Wei (2020) claimed that Chinese economy would not halt for too long after the Coronavirus pandemic, because the earlier the pandemic is ceased, the stronger the economy may recover In fact, 42 Apple Stores in China are opened, regardless of the closure of all other Apple Stores in the world (Byford, 2020), together with the same reopening of the many other firms in China mainland In reverse, the lockdown in the US is continued with the rising of active cases all around the States, regardless of President Trump’s efforts of marking the reopening day for the US economy (Shapiro, 2020) When the epidemic goes global, the battle field is national, but the consequence, in reverse, is global Several methods of preventing the disease were applied, but the difficulties are all noticed from any economy that enters the global supply chain (Ross, 2020) Chapter – Review This chapter has introduced how different the world is since the latest US – Japan trade war and how the Coronavirus goes global to show the dependence among the factors of the global supply chains It could be hard to totally separate globalization and nationalism when the world has such great varies The trade war showed us the global agreements and even disagreements in solving common problems Additionally, when the trade war temporarily mitigates, the world still has to face a complex issue, 42 both global and national Consequently, the traditional approach of understanding globalization and dealing with global threats and divergence cannot ease the problems 43 CHAPTER 5: CONCLUSION When the term “in this era of globalization” or any resembling phrases are mentioned, they bring in the common understanding of a spontaneous and continuous presentation of globalization in the world economy In no time, it is noticed that globalization cannot be considered the one and only stream of the economic movement, because nationalism declares its undeniable importance in the policies of nations I have explored globalization in the rise of nationalism through how China and the USA respond to the conflict, and analyze how globalized or how nationalist they have initiated to obtain national goals and national values It is clear that globalization cannot equate to westernization Going global is not totally following how Western countries did in the past: industrialization, urbanization and even protectionism Going global is the way nations choose to benefit from the global supply chain, but to protect them in trading, a part of globalization Nationalism does not fall too far from the roots of creating a country, because it makes people’s nationhood, or even beliefs in their nation-states Globalization has changed into a phase that nations are interdependence, so they cannot easily escape from the global supply chain Moreover, globalization should not be considered as westernization, as observed in China’s development, when they globalized without absolute westernization The trade war is also the choice of nation to achieve their national goals and to keep, or to change the world order In this thesis, globalization is understood as a process, because it covers the development of the whole world and makes nations interdependent Nationalism is a theory, or a discourse, as it calls for actions from the governments and people to protect national benefits (Freeman, 2005) I could also disagree with O’Sullivan’s (2019) idea about the end of globalization, because it requires deep regionalization, focusing on three parts of the world: the USA, Europe and China To be more specific, the US and China are still in competition to achieve American Dream and Chinese Dream, respectively Globalization in the rise of nationalism is a worth-witnessing topic It is lucky to be in the moment to see how it develops The concrete supply chain requires any participants to understand the benefits in joining in and the possibilities of loss China 44 has risen to a more developing country, and the US used the same method to prevent China from being the leader of the world economy It is true that Globalization brings in opportunities and challenges, even when two superpowers are trying to claim their accomplishment In China, globalization is understood in such a different way that they allow each field to be globalized or not In reverse, in the USA, the nationalist acts are enacted by President Trump to intercept China from invading American Dream of a leading nation I tend to agree more with Jacques (2009) about the difference of globalization in China Globalization in China is stimulated by the government to advocate the nation’s pride and encourage the Chinese Dream of public prosperity for Chinese people Globalization is not ending It is changing to the stage that requires different understandings and explanations This research stands for my understandings, but several areas should be explored more in further research Firstly, I tried to examine and interpret globalization as the trade war does not represent the end of globalization, even in the rise of nationalism; however, I did not prove that what the opposite of nationalism is Secondly, all of the events listed in this thesis is still happening now, and so does the trade war To jump to any final conclusion about the future of the trade war in this moment is unreasonable I just can give my opinion about a different way of understanding globalization in the rise of nationalism Though I did not fully assimilate both O’Sullivan theories, by no means I totally refuse their findings Their theories are necessary to research about the US-China trade war as a model case study for contesting globalization 45 REFERENCE Amity, M., Redding, S J., & Weinstein, D (2019) The Impact of the 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Stores in the world (Byford, 2020), together with the same reopening of the many other firms in China mainland In reverse, the lockdown in the US is continued with the rising of active cases all... process of globalization I will analyze the case of the US- China trade war to specifically answer the following questions: - What are the factors and events during the US- China trade conflict proving