tirsdag 22. januar 2019

China and the US Are Destined for Peace, Not for War

World politics throughout history can be very dramatic. When Japan’s commercial and industrial consortiums marched into the U.S. market and significantly challenged U.S. economic dominance several decades ago, Time magazine exclaimed that “the issue — and the real Japanese challenge — is nothing less than whether the two mightiest trading nations in the world can learn to live in commercial peace.” In the end, no major war broke out between this pair of commercial rivals and close allies at the same time. What happened to the Japanese economy after the 1980s, however, may remind us that peace comes at a price, in one way or another.

Now, history seems to be repeating itself. After the United States and China called a truce in their trade war in early December 2018, these two economic giants finally ceased leveling tariffs upon each other. Although temporary, the truce is nevertheless great news and provides timely relief to China and the United States, both of which were growing exhausted in this strategic-level commercial dare.