In the summer of 2018, when former President Donald Trump launched a trade war with Beijing, the Chinese economy was riding high. There was even talk it could soon overtake the United States as the world’s largest. Now, with Trump months away from retaking office, what had appeared to be a juggernaut has been greatly diminished. Contending with property, debt and deflation challenges, China doesn’t look ready for another fight.
Armed with an understanding about the way the president-elect operates, the Chinese leadership is better equipped to deal with the real possibility of Trump making good on his promise to impose upwards of 60% tariffs on goods sold to the United States, according to economists and analysts, through a combination of trade diversification, targeted retaliation against US companies and support for domestic consumption.
“China has been preparing for this day for quite some time. The US is much less important to its trade network (than it was before),” said Dexter Roberts, author of the Trade War newsletter and a senior fellow at the Atlantic Council.
søndag 24. november 2024
China is armed and ready for trade war 2.0 with Donald Trump
