Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Sunday, 12 October 2025

The Persistent Echo of Trade Wars: A Long-Standing Reality Unfolding

The Persistent Echo of Trade Wars: A Long-Standing Reality Unfolding

The Echo of Trade Wars: A Persistent Reality

The recent news from the Times of India, detailing China's strong reaction to the US imposing an additional 100% tariff on Chinese goods, rings with an all too familiar resonance "'Don't want to fight but …': China blasts US over extra 100% tariff; calls out 'double standards'". China's accusation of 'double standards' and their statement, "We do not want to fight, but we are not afraid to fight," perfectly encapsulates the escalating tensions that have been brewing for years.

It transports me back to 2018, when I wrote about the emerging signs of a global trade conflict. I recall penning a piece titled, "A #TradeWar Epidemic ?" on March 22, 2018, just a day before another blog, "The Second Shot ?," where I explicitly questioned whether we were witnessing "a beginning of the end" for the WTO and globalization itself. In those writings, I had already highlighted President Trump's approach of using tariffs to correct trade imbalances and protect domestic industries, and I noted how other countries, including China, were preparing to retaliate. The current situation, with tariffs pushing the overall rate to about 130%, feels like a direct continuation of that narrative.

I remember emphasizing then that in this evolving landscape, multilateralism would gradually yield to bilateralism, and that in such a 'dog-eat-dog' world, the WTO's ability to provide a truly "Level Playing Field ?" would be severely challenged. Seeing how things have unfolded, it's striking how relevant those earlier insights still are. Reflecting on it today, I feel a sense of validation – not a triumphant one, but a sober recognition that the challenges I identified years ago have indeed materialized and intensified.

This renewed urgency makes me revisit those earlier ideas. The solution I proposed then, and one I believe holds even more weight today, is for nations, particularly emerging economies like India, to transform into a LOW-COST-ECONOMY. This means rigorously implementing reforms to lower the costs of manpower, materials, money, space, and management, while addressing systemic issues like compliance and corruption. Only by being able to compete globally on the basis of superior quality, lower prices, and faster delivery can we truly navigate these turbulent international waters.

These trade wars are not merely economic skirmishes; they are reflections of deeper geopolitical shifts. They demand a strategic, forward-looking approach, where internal strengthening becomes the most potent defense against external pressures. The 'double standards' China refers to underscore a breakdown in trust and established norms, making self-reliance and competitive efficiency paramount.


Regards,
Hemen Parekh

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