onsdag 15. januar 2020

Phase one agreement aside, could the trade war future mean choosing China or the US?

The limited agreement sees a pause in the trade war between the countries, with some levies being called off and China agreeing to increase some US imports, particularly in agriculture. But does this really represent a significant breakthrough? "Not a chance," says Steve Tsang, director of the SOAS China Institute at the University of London.

He says the Chinese economy is going through a fundamental restructuring which means the current tensions with the US, both economic and otherwise, will endure beyond the presidency of Donald Trump. In his view, Xi Jinping's leadership has brought about major changes to China's relationship with the US and the Western world. "This is a leader who fundamentally changes the way the Chinese views the rest of the world," he told DW.

"He wants the Chinese economy to be no longer dependent on the West. That is what Made in China 2025 is all about. So whether you have Donald Trump or not, we would see China moving in the direction the government deems it is able to, in order to reduce Chinese dependence and economic dependence on the rest of the world."