On Wednesday, October 9th, U.S. Ambassador to Japan Rahm Emanuel published a commentary in The Wall Street Journal suggesting that the United States and its allies should form an alliance similar to the North Atlantic Treaty Organization (NATO) to counter the economic threats posed by China.
In his article titled “An Alliance to Counter China’s Aggression,” Emanuel wrote that over the past three years, the Biden administration has established a new security, political, and diplomatic network in the Indo-Pacific region, which has effectively isolated China.
He argued that the U.S. and its allies could further isolate China by countering Beijing’s economic strategies, as economic coercion is a clear manifestation of China’s imperial ambitions.
Emanuel quoted political scientist Aaron Friedberg from Princeton University in the article, emphasizing that a trade protection alliance would ensure countries support allies facing economic attacks in a unified manner, thereby reducing the risks posed by China’s coercion.
The article stressed that for this alliance to be effective, it would need to develop economic clauses equivalent to Article 5 of the North Atlantic Treaty – an attack on one member is an attack on all members – as its core principle.
Emanuel accused China of using economic coercion, mercantilism, and debt-trap diplomacy to suppress competition and control other countries through its foreign policy.
He cited examples of Australia and the small European country Lithuania successfully resisting China’s economic coercion through regulatory measures and export restrictions. Emanuel urged allies to stand together against China’s economic threats.
Following Australia’s call for an independent investigation into the Covid-19 pandemic in 2020, the country faced hefty punitive tariffs imposed by China. However, Australia was able to reduce its economic dependence on China by leveraging its network of allies and expanding exports to other markets, ultimately forcing Beijing to compromise.
In 2021, Lithuania faced a series of economic and diplomatic sanctions from China after allowing Taiwan to establish a “Taiwan Representative Office in Lithuania.” Lithuania’s refusal to yield garnered broad support from European allies and led the European Union to pass anti-coercion legislation to counter China’s oppression.
Emanuel stated that the responses of Australia and Lithuania provide a blueprint for future actions. He emphasized the need for like-minded countries to cooperate more closely to collectively support allies facing economic attacks.
Furthermore, Emanuel criticized China for exporting its domestic economic problems worldwide through overcapacity and dumping. He condemned China’s mercantilist strategy as harmful and stubborn as its economic coercion.
He criticized Beijing for controlling poor countries through predatory lending, referring to debt-trap diplomacy. Emanuel suggested that countries, along with international organizations like the IMF, should amend and simplify loan programs to better assist recipient nations.
He argued that the U.S. must now integrate economic policies into its broader strategic framework, similar to how it successfully contained the Soviet Union during the Cold War.
He quoted diplomat George F. Kennan’s famous “Long Telegram” from 1946, stating that the U.S. effectively resisted Soviet expansionism through comprehensive political, security, and economic policies.
In conclusion, Emanuel emphasized, “By embracing President Biden’s multilateralism policy and adopting new economic strategies, we can contain China’s aggression. Most importantly, we can provide the economic leadership needed by allies and partners in the developing world in this era.”
Emanuel is known for his tough stance on China. During the Clinton administration, he served as a policy advisor and a member of the U.S. House of Representatives and later as Chief of Staff to former President Obama from 2009 to 2010.