It is clear that Trump has poked the bear and at least received a piece of what he was after, and that is to be paid fairly for the business we are doing with China or move our business operations. Industries have already begun finding new homes for manufacturing, such as Taiwan. It is probably in our best interest to end this trade war and create a fair and equal treaty with China. Trump can chalk it up as a win because he got the last jab and both sides can stop punishing innocent industries with the burden of finding alternatives from this trade war. If you were Trump, what is your next step?
https://www.cnbc.com/2019/08/29/china-says-its-willing-to-resolve-trade-war-with-a-calm-attitude.html
If I was Trump I would aim to end this trade war as quickly as possible. With a possible recession in our near future you would think that our president would be more concerned with our own economy rather then getting the last jab in with China.
ReplyDeleteI think that the trade war is an extremely interesting subject due to the fact that one of the goals of the war is getting fair play access to China's blacklist of industries. The blacklist contains industries that China refuses to allow foreign enterprises to participate in, effectively giving the Chinese companies in those industries a huge competitive advantage. Trump has an issue with this list, and has been trying to get China to go entirely free market for his entire presidency. That being said, overall the trade war is not going the way Trump intended, China has a higher capacity for tariffs than the United States does and China has not backed down. It is my opinion that Trump honestly believed China would have conceded awhile ago on at least some of Trump's goals for the trade war and because they haven't Trump is running out of bargaining power. If I was Trump now would be a good time to decide what exactly he plans on getting out of the trade war and give up trying to win on all fronts and actually negotiate for what is important for the country, which is opening the blacklist industries.
ReplyDeleteWith the threat of a looming recession, Trump should be more cautious about pushing an economic agenda that puts the U.S. economy in a more perilous position. China realizes that this trade war weakens their current economic state, and because of their weakened economy they are more suspectable to the looming recession. China is more willing to negotiate because their leaders realize that these negotiations would allow the country to strengthen their economy, while, also, increasing their protection from a recession. Because of these factors, if I was Trump, I would negotiate a trade deal with China to strengthen the American economy, which would, also, put the U.S. economy in a more advantageous position (to protect against the recession).
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