© 2018 by Robert Person.  The views expressed on this website are my own and do not represent the official policy of the U.S. Army, Department of Defense, or U.S. Government.

christopher.papa
Jan 22

2 Reasons the U.S.-China Trade War Truce Won't Last

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Despite coming to a truce back in December in the ongoing trade war between the United States and China, the odds are is that it will not last for very long. One of the reasons highlighted by Jeffery Kucik is due to the difference in priorities between president Trump and president Xi. One of China's main concerns is the US involvement in the region regarding arms deals with Taiwan. The trade war, although economically motivated, has become a geopolitical war as well. This concerns China because they do not recognize Taiwan as a sovereign state, rather an extension of the Chinese government. Despite this critique of the US from China, China's is hurt by the increase in tariffs from the US, and relies on economic interdependence to sustain its economic power. This shows that China resisting the urge to succumb to economic nationalism in the favor of open and free trade.

 

China is not the only player trying to maximize economic power, as the US is using tools of mercantilism and economic nationalism to try and pressure China. The US demanded that China buy a "substantial" amount of US goods to promote economic activity in domestic firms. President Trump's policy of "America First" calls for a new wave of economic nationalism and protectionist policies that threaten to disrupt liberal institutions and open trade in the international economy. With President's Trumps unprecedented stance on protectionism given the last few presidents, we can see the US moving towards a self-serving policy of enhancing national power through these protectionist policies. It is the difference in China and the US's perspectives that shows the truce in the trade war is unlikely to last.

 

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