In yesterday’s Financial Times, Gideon Rachman, explains and defines the reason for the ongoing trade war between two of the world’s global powers, China and the United States of America.
‘Trump complains of a large trade deficit with China, which he views as a symbol of the US’s decline as a manufacturing powerhouse. Chinese imports to the US totalled $539.5bn last year, while $120.3bn was sold the other way – leaving a trade deficit of $419.2bn.’ (Guardian 10.05.19)
However, Xi Jinping is not happy with America’s continued position as world leader and is looking for China to ultimately displace it. This can only be achieved by China’s continued rise as an economic power.
The new tariffs were slapped on China after Beijing made extensive amendments to the new one hundred and fifty page trade deal with the US, which had been in the making for five months.
‘The two presidents’ complaints about the world system are thus mirror images of each other. Mr Xi wants to change the world’s strategic order, and to do that he needs to maintain its economic order. Mr Trump wants to preserve the strategic order, and to do that he needs to change the economic order.
America and China are therefore both revisionist powers. And they are also both status quo powers. America is the status quo power on geopolitics, so it has become the revisionist power on economics. China is the revisionist power on geopolitics, so it has become the status quo power on trade.’
For the full article see below:
America is the revisionist power on trade
Other Sources and further reading:
US-China trade deal: Donald Trump insists there’s no rush to secure deal
https://www.theguardian.com/business/2019/may/10/us-china-trade-deal-tariffs-markets-talks
Trump: We will make a deal with China
https://www.aljazeera.com/news/2019/05/trump-deal-china-190514175801087.html
Who pays for US tariffs on Chinese goods? You do
https://www.politifact.com/truth-o-meter/statements/2019/may/14/donald-trump/does-china-mostly-pay-us-tariffs-rather-us-consume/
Globalism Versus Globalization
https://www.theglobalist.com/globalism-versus-globalization/
Feature image credit:
#China, Donald Trump, trade, USA, Xi Jinping
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