China Travel Advisory
The US vs China trade war has become an epic battle of will between two of the world’s most powerful men. Tariffs and sanctions have been placed by both countries in an effort to cause the other to give in. The latest salvo comes in another form from the Chinese government. A China travel advisory warns that the US may not be a safe place for tourists, citing shootings, theft, and robbery. The report was issued by the state run Xinhua News Agency.
No statistics were provided to back up the China travel advisory issued by the Ministry of Culture and Tourism. In fact, China did not offer any facts to back up the warning. China Central Television, another state run organization said: “Recently, U.S. law enforcement agencies have repeatedly harassed Chinese citizens visiting the United States through exit and entry inspections, door-to-door interviews and other means. The foreign ministry and Chinese embassies and consulates in the United States remind Chinese citizens and Chinese-funded institutions in the United States to raise security awareness and take more precautions.”
Chinese Tourism Used As A Weapon
The China travel advisory is nothing new really. It is a weapon the government there has wielded quite effectively in the past to inflict economic damage on other countries. In 2017 the government issued a ban on package tours to South Korea in order to express its anger with that country for deploying a US backed missile system. That move was responsible for a decrease of nearly half of one percent in South Korean tourism the following year.
Huawei‘s Meng Wanzhou was arrest in Vancouver due to a request by the US, and a China travel advisory was immediately issued against Canada. This action is not a new means of warfare for the economic superpower, but rather a well designed precise strike at the economic heart of its enemies. China has the largest population of any country in the world, and by leveraging the size of its population through tourism bans, they can cost nations millions of dollars annually.
Statistics Show The Advisory To Be False
According to a report from Bloomberg, violent crime is on the decrease in the United States. In the first six months of 2018 violent crime fell 4.3%. Murders were reduced by a full 6.7%, and robberies dropped by 12.5%. Theft fell by 6.3%. This all indicates that the China travel advisory is nothing more than a tool intended to hurt the US economically. What action the White House will take in retaliation to this move by the Chinese is yet to be seen. The US attracted more than 2 million Chinese tourists in 2016, and that translates into big bucks for the tourism industry.
Tourism Based Businesses Will Take The Hit
Wealthy Chinese travelers are just one of the ethnic groups relied on by some tourism based businesses. Cruise lines and casinos make big money thanks to officials and business men who travel from the Orient. The China travel advisory against US destinations will definitely cut into their profits over the next few months, which in turn affects the economy of the nation. Retailers such as Tommy Hilfiger, Tiffany & Company and others are already feeling the strain of the trade tensions between the two countries. Hilfiger stock took a plunge after they reduced earnings expectations and other companies are expected to follow suit.
No End To Trade War In Sight
The China travel advisory is the latest attempt by the Chinese to get the US to back off on tariffs and sanctions. Billions of dollars in tariffs on Chinese goods, bans on companies like Huawei from accessing Google’s Android OS, and other actions taken by both sides have not yet led to a solution. The US has consistently lagged behind China in terms of profit when a history of trading between the two countries is examined. Trump’s goal is to try to level the playing field between the two countries, in hopes of building a profitable relationship for both. However, it appears the Chinese intend to keep their advantage in the economic market, rather than work out an agreement that is profitable for all parties. While there is no end in sight at the moment, at some point someone will have to concede and come to terms with the opposing force.