WASHINGTON, July 8 (AFP): The United States is becoming increasingly protectionist and risks losing its economic leadership position in Asia to China, an official of President George W Bush's administration warned yesterday.
"It is ironic that in the 21st century, America is turning inward, uncertain whether economic engagement with Asia is in the national interest-even as Asian nations rush to conclude trade and investment agreements with one another," said commerce undersecretary Christopher Padilla.
"Perhaps this seems alarmist. But look at the facts," he told a Washington forum, saying many US lawmakers "are deeply suspicious" of expanded trade with allies such as South Korea and "downright hostile" toward trade with China.
The Democratic party-controlled US Congress has refused to ratify a free trade agreement with South Korea, the biggest trade deal in 15 years, citing barriers restricting US auto imports among the key reasons.
Lawmakers are also considering plans to impose sanctions on China over currency concerns, amid recent turmoil in the American economy following a housing market crisis, falling US dollar and record oil prices.
Padilla said he wondered whether America would remain committed to economic openness.
If Washington drifted toward trade protectionism and restrictive investment and immigration policies, then Asia was likely to proceed on its own with regional integration, leaving the United States behind, he said.
This would leave leadership on the Asian economic playing field largely to China, the fastest-growing Asian economy, he said.
"A hesitant, timid, and inwardly focused America could give rise to an economic 'Pax Sinica,' in which China has the opportunity to shape Asia's economic architecture as it would prefer, rather than as we might like," he said.
"Others in Asia might have little choice but to accommodate themselves to this economic reality," he said.
Pax Sinica, Latin for 'Chinese Peace,' is a euphemism for periods of peace in East Asia during times of a strong Chinese empire between the 1680s to 1790s, characterised by the dominance of the Chinese civilisation.
