by Chen Xuegen
BEIJING, Sept. 21 -- During the anniversary of
the financial crisis, Ben Bernanke, the chairman of the U.S. Federal Reserve,
said on Tuesday that the world economy is stepping out of the crisis, and the
recession may have ended in the U.S.
After this turning point, will the U.S. assume
important leadership responsibilities in reshaping the future global economy? So
far, the signs are disappointing.
When it comes to reforming the international
financial system, the U.S. government has not done as much as China and Europe
have. President Barack Obama said on the anniversary of the bankruptcy of Lehman
Brothers that "it is neither right nor responsible after you've recovered with
the help of your government to shirk your obligation to the goal of wider
recovery, a more stable system and a more broadly shared prosperity."
He urged the financial industry "to accept serious
financial reform, rather than confrontation."
Obama's remarks were aimed at a Wall Street that
seems not only ungrateful for being rescued, but also ready to slip back into
its old ways and stubbornly resist any kind of reform for the financial system.
Obama himself, however, set a bad precedent during the G20 meeting by announcing
the imposition of tariff on Chinese tires.
Naturally, China strongly opposed this decision. Not
just because that China has been badly affected.
Nonetheless, we shouldn't open the door to trade
protectionism, especially since the reason why the world recovered relatively
quickly this time, as opposed to the Great Depression of the 1930s, was due to
the collaborative upholding of the free trade system and the promotion of the
reform of the international financial system. China played a crucial role as a
large, responsible power during this period.
This should be the international thinking in the era
of globalization. China doesn't want to waste all the previous efforts due to
the irresponsible actions of the U.S. In this regard, China has to urge the U.S.
to take up its own responsibilities.
After the financial crisis, if not only the systems
remain the same, but also a wave of protectionism follows, the U.S. role as a
world leader in the economy will undoubtedly be challenged. People will see the
U.S. as a selfish country, or at best a powerless one unable to implement
change.
At present, there are signs suggesting that the
financial industry is aggressively lobbying against some aspects of the reform
proposals.
As the crisis subsided and the financial system
gradually returns to its normal state, the political window to implement major
reforms may soon be closed. If Obama cannot seize the day, he will not only lose
the possibility to reform the old system that causes the crisis, but also bury
deeper hidden dangers for future crises.
Obama's actions on tire tariffs may go against his
own beliefs, and he should hang on and not bend to the pressure of domestic
interest groups. His campaign was built on the promise of change, but now Obama
seems lost himself.
These actions may be a prelude to a trade war. Leo
Gerrard, president of the United Steelworkers Union, has already declared that
the U.S. market is flooded with Chinese steel, toys, medicine, dog food and so
on, implying that he will call for more government-sponsored tariffs against
products made in China.
This cannot save the dying U.S. tire industry and
give American workers more benefits. On the contrary, not only U.S. consumers
but also America's international image will suffer from this. Obama took this
action just to appease a campaign ally. He needs to think beyond U.S. domestic
politics, and act for the good of the world. The U.S. is in trouble now and
change is inevitable. How Obama deals with these issues, and the pressures from
old political forces, will decide his legacy.
The whole world was invigorated by the election of a
fresh face to the White House last year. We don't want to see him leave as
another Bush.
(Source: GlobalTimes.cn)
Special Report:
Global Financial
Crisis
