A trade war with China would backfire on Trump — and America
2018-01-17 09:21:46 source：The Washington Post
January 16, 2018
As the Trump administration prepares to take a tougher trade stance on what it sees as unfair Chinese trade policies, China has signaled that it won’t accept such measures lying down, saying it will “resolutely safeguard” its economic interests. It’s the practical pushback to President Trump’s now years-long verbal jabbing at China, from “They’re ripping us off, folks,” to “So much for China working with us — but we had to give it a try.”
This week Trump reportedly told President Xi Jinping that the U.S. trade deficit with China isn’t sustainable. But the crux of this standoff will be whether Trump understands that while the United States has some leverage, its relationship with China is one of mutual dependence that can’t be disrupted without doing damage to both sides.
To wit: A report last week that China’s government is contemplating reducing its purchases of U.S. Treasurys briefly rattled financial markets. Against the backdrop of rising trade tensions between the two countries, it was widely seen as a not-so-subtle warning that aggressive American action on trade might jeopardize the willingness of China to subsidize the spending of the U.S. government.
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