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China Is Reeling From Its Trade War With The U.S. (According To The Media In Asia)

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Title : China Is Reeling From Its Trade War With The U.S. (According To The Media In Asia)
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China Is Reeling From Its Trade War With The U.S. (According To The Media In Asia)

U.S. President Donald Trump (3rdL) holds a bilateral meeting with China's President Xi Jinping (2ndR) at Trump's Mar-a-Lago estate in Palm Beach, Florida, U.S., April 7, 2017. REUTERS/Carlos Barria

SCMP: China needs to put its house in order as the trade war goes from bad to worse

Aidan Yao says the China-US trade war is likely to continue, if not worsen, since it is rooted in a competition much deeper than trade imbalances, and therefore the Chinese side needs to prepare for the worst.

In contrast with the progress seen in United States-European Union negotiations, there are no signs of trade talks resuming between the US and China since the breakdown of negotiations in June.

This underscores a fundamental difference between the US-EU and US-China disputes. The former is genuinely about trade between two allies, while the latter is a structural conflict – disguised as a trade spat – between two adversaries. That structural conflict is centred on China’s rapid catch-up in technology and innovation, which, in the eyes of the Trump administration, has been achieved via illegal technology transfer and lax protection of intellectual property.

Read more ....

WNU Editor: Here are some more articles from SCMP ....

China should cut its losses in the trade war by conceding defeat to Donald Trump (August 10, 2018)

Did China think Donald Trump was bluffing on trade? How Beijing got it wrong (July 27, 2018)

China has no idea how to play Trump, and is doing what it always does when it smells trouble (July 27, 2018)

As to what is my take. When President Trump was elected, this blog warned that if China continued doing what they have always been doing .... promising to curb their U.S. trade deficits with the U.S. but doing nothing to make it happen .... China Offers "Concessions" To Avoid A Trade War With The U.S. (April 9, 2018) .... we were going to enter into a trade war. And as this blog predicted, we are now in a trade war. This trade war is also not being properly covered by the North American press, but in Asia this story is receiving coverage that is 24/7. On a side note, I had some friends from China passing through Montreal to the U.S. this week. They represent a large state company in China, and they told me that they have completely underestimated President Trump's resolve on this issue. They also believe that China will need to compromise on key issues, but the problem they see is that for now there is no political will in Beijing to do so. Bottom line .... my Chinese friends do not think this is going to end well for China when this trade war is finally over, and their only hope right now is that the Democrats win the Congress later this year and make President Trump's political life difficult, or President Trump is defeated in 2020.
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U.S. President Donald Trump (3rdL) holds a bilateral meeting with China's President Xi Jinping (2ndR) at Trump's Mar-a-Lago estate in Palm Beach, Florida, U.S., April 7, 2017. REUTERS/Carlos Barria

SCMP: China needs to put its house in order as the trade war goes from bad to worse

Aidan Yao says the China-US trade war is likely to continue, if not worsen, since it is rooted in a competition much deeper than trade imbalances, and therefore the Chinese side needs to prepare for the worst.

In contrast with the progress seen in United States-European Union negotiations, there are no signs of trade talks resuming between the US and China since the breakdown of negotiations in June.

This underscores a fundamental difference between the US-EU and US-China disputes. The former is genuinely about trade between two allies, while the latter is a structural conflict – disguised as a trade spat – between two adversaries. That structural conflict is centred on China’s rapid catch-up in technology and innovation, which, in the eyes of the Trump administration, has been achieved via illegal technology transfer and lax protection of intellectual property.

Read more ....

WNU Editor: Here are some more articles from SCMP ....

China should cut its losses in the trade war by conceding defeat to Donald Trump (August 10, 2018)

Did China think Donald Trump was bluffing on trade? How Beijing got it wrong (July 27, 2018)

China has no idea how to play Trump, and is doing what it always does when it smells trouble (July 27, 2018)

As to what is my take. When President Trump was elected, this blog warned that if China continued doing what they have always been doing .... promising to curb their U.S. trade deficits with the U.S. but doing nothing to make it happen .... China Offers "Concessions" To Avoid A Trade War With The U.S. (April 9, 2018) .... we were going to enter into a trade war. And as this blog predicted, we are now in a trade war. This trade war is also not being properly covered by the North American press, but in Asia this story is receiving coverage that is 24/7. On a side note, I had some friends from China passing through Montreal to the U.S. this week. They represent a large state company in China, and they told me that they have completely underestimated President Trump's resolve on this issue. They also believe that China will need to compromise on key issues, but the problem they see is that for now there is no political will in Beijing to do so. Bottom line .... my Chinese friends do not think this is going to end well for China when this trade war is finally over, and their only hope right now is that the Democrats win the Congress later this year and make President Trump's political life difficult, or President Trump is defeated in 2020.


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