It is no secret of President Trump's ongoing war on trade with China whether it be raising tariffs on Chinese imports or through the efforts to ban apps created and owned by Chinese companies. But despite Trump's assertion that the U.S. is able to push China back, other economic metrics have shown otherwise. Consider the trade balance that Trump has deemed important in his campaign against China. China’s trade surplus with the U.S. has grown almost 25% since the start of the Trump presidency and China has not reached their target to achieve their end of the phase 1 deal, the single accomplish of Trump's tariffs.
But despite that, the way the pandemic was handled is shown in contrast between the U.S and China with the GDP growth. China is the only country among 48 to have reported a second-quarter gross domestic product number that was higher than at the end of 2019 while the U.S., the worst country when it comes to the coronavirus (as measured by death and infections), the economy shrank 9.5% in the second quarter.
The author suggests that Trump's efforts to decouple the U.S. economy and China's is forcing China to be more self-sufficient. While I do agree that China are approaching a path of self independence away from the U.S., I also do not think the two economies can completely decouple due to both being the world's 2 biggest economies. So while there is trouble between the relations of the two countries, the two cannot grow without the other.
China and the United States are the two world super powers. As much as they may deny it, they depend on one another greatly. You are completely right.
ReplyDeletei definitely agree with you because my honest opinion is nobody is winning the trade war.
ReplyDeleteWhile the trade war, and Trumpian buffoonery in general, has benefited China more than the United States (and this is a popular opinion among China's elite), China's victory is not as great as many think: they have simply lost less. As you indicate, the decoupling is not good for anyone.
ReplyDeleteFurther, China's growth doesn't tell the full story. Much of China's stimulus has focused on investment and construction, with little regard for the welfare of individuals. This is particularly the case for China's migrant workers, who often slip through social safety nets.
I would agree with the statements made here, although also I do not think that many people take into account the lack of stance against China from many other countries. Obviously it would not be a good idea economically to start unneeded tension with China, but it should also be taken into account that those actively working with China are working with a country that currently is imprisoning ethic minorities in the western regions in concentration and reeducation camps. I think there is a lot more that the US needs to do to not only get itself back on its feet from Covid, but also to continue to perform as we should be, so we can focus on other pressing social and economical issues.
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