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Regina Ip

For several years, Chinese officials have been talking about “changes unseen in a hundred years” without elaborating what they have in mind. Looking at the drastic changes to the world order since Donald Trump returned to the White House, one can only conclude that the Chinese have spoken with uncanny prescience.
There have indeed been many changes to the international system in recent years, starting with a rapid deterioration of US-China relations since Trump’s first term as US president. A body of opinion was formed in political circles that China was taking advantage of America and embarking on a “hundred-year marathon” to supplant the US as a global leader.
To contain China’s rise, tariffs, chip export controls and the adoption of an Indo-Pacific strategy to cultivate regional counterweights to China became US policy.
In the West, some argue there is an imbalance in China’s economy, and that the country’s rise is a source of disruption or “distortion” of the global economy. An imbalance has arisen because China is producing too much and consuming too little. Some point to the fact that consumption constitutes less than 40 per cent of China’s economy, compared to about 70 per cent in the case of the US.
There are also concerns that China has an overcapacity in manufacturing. In 2024, China accounted for 31.6 per cent of global manufacturing output, almost double that of the US (15.9 per cent), far outstripping that of other industrial nations. A theme in many economic analyses of China is that it should have adopted more aggressive measures to boost consumption and enable its domestic market to absorb its excess production.
Yet nothing beats Trump when it comes to disrupting the global economic, trade and financial systems since his return to power. The now-suspended “reciprocal” tariffs announced on “Liberation Day” are nothing short of “divide and conquer” tactics, in the words of Nobel economics prizewinner Joseph Stiglitz, designed to bulldoze the US’ trading partners into submission.

The Trump administration doesn’t care if the rules-based global order degenerates into a Hobbesian universe of untrammelled, selfish, brutal cutthroat competition so long as the US achieves its twin objectives of weakening China and raking in millions of tariff dollars to mitigate its deficit woes.
As John Clarke, former head of the European Union’s delegation to the WTO and United Nations, said at the recent Global Prosperity Summit held in Hong Kong, the US “is now a pariah”. As a rogue member of the international community, it is trampling on the legitimate rights and interests of friends and foes without any respect for their independence and national sovereignty.
Not only are his “reciprocal” tariffs a brazen violation of the principles undergirding the World Trade Organization but his “might is right” approach has done irreparable damage to the rules-based, global order.
Since Liberation Day, only punishment by the bond markets and China’s tough retaliatory stance prompted the Trump administration to retreat. Other countries will have to follow China’s example of standing up to Trump. At the summit, Clarke said the Europeans “walk softly” and “carry a big stick”. As a massive trading bloc comparable to China, the European Union will not hesitate to fight and is readying 95 billion euros (US$107.5 billion) in retaliatory tariffs if trade negotiations with the US fail.
If might is right and only the great powers can defend their interests by striking back where it hurts, what hope do small countries have of successfully upholding their rights? The only way to safeguard their rights is for the world to embrace a rules-based order so the legitimate interests and rights of every country, big or small, can be protected.


At this critical point when the rules-based system is at risk of being jeopardised, in an ironic role reversal, China has come out holding the flag for the rules-based system. At the Global Prosperity Summit, Wu Hailong, president of the semi-official China Public Diplomacy Association, articulated Beijing’s world view.
Wu said China would continue to strive for mutual respect, peaceful coexistence and win-win cooperation with the US. He suggested China and Europe have a good foundation for cooperation.
Wu also said that the Global South, which “accounts for over 40 per cent of global economic output and contributes 80 per cent of global growth … is a pivotal force in safeguarding peace, driving development, and advancing global governance”. Global prosperity can be achieved so long as mankind shares a vision of the planet as their common home and a belief in their common destiny.

Hong Kong is a prime example to follow for a multilateral, rules-based order. Observing its responsibilities under the Basic Law and WTO membership, Hong Kong has maintained zero tariffs on US products despite the hefty unilateral tariffs imposed since April 2. Hong Kong also strives to implement UN conventions and agreements applicable to the city. It should throw its weight behind its country, China, in helping to uphold the global rules-based system.
Hong Kong has special expertise and experience in dealing with the US-led West due to its nearly 160 years of existence under British rule.
Even with regards to the US, which has gone rogue, Hong Kong can help build bridges through the linkages it has established in trade, investment, finance, combating transnational crime, public health, pandemic control, climate action, philanthropy, disaster relief efforts, AI governance and sustainable space development.
Hong Kong can play many roles and the opportunity must be seized to realise its full potential.


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As the US bullies trade partners and undermines multilateral norms, Hong Kong can help Beijing uphold a cooperative global system


As the US bullies trade partners and undermines multilateral norms, Hong Kong can help Beijing uphold a cooperative global system.


Donald Trump

Donald Trump’s China policy

China trade

Trade

China tariffs

US-ally trade wars

US-China trade war

World Trade Organization (WTO)

Hong Kong economy

Hong Kong politics

Hong Kong society

United States

Expresses the views, ideas and conclusions of the author. (Eg. Enough of Crazy Rich Asians, think of crazy poor Hongkongers.)


How Hong Kong can help defend the rules-based order

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}As the US bullies trade partners and undermines multilateral norms, Hong Kong can help Beijing uphold a cooperative global system

As the US bullies trade partners and undermines multilateral norms, Hong Kong can help Beijing uphold a cooperative global system