Why Trump is hitting China on trade

Suddenly Donald Trump’s trade war is much clearer.

It is much more similar to the fight against the familiar Trump territory, America V China than the fight with all the world with the world.

The 90 -day suspension of the higher “retaliation” tariffs imposed in dozens of countries still leave 10%universal tariffs.

However, China, which delivers everything from iPhone to children’s toys and accounts for about 14%of US imports, has been selected for many harsh treatment with 125%of tears.

Trump described the president as showing “lack of respect” because Beijing is ready to retaliate with 84% of US products.

But for the first time a politician who fought in the White House after a half -chin message, there are much more things than simple retaliation.

For Trump, this is about the unfinished business of the first term.

“We didn’t have time to do the right thing.

The goal is to improve the designated world trade system centered on China as a factory in the world.

To understand how central to the US president’s thinking, you must return to time before you think of the winner as a candidate.

In 2012, when it was first reported in Shanghai, China’s business capital, almost everyone (global business leader, Chinese civil servants, foreign governments, trade delegations, foreign community and learned economists) were reported when almost everyone had always trade with the state.

It promotes global growth to provide endless supply of cheap products, and the military of new factory workers in China is increasingly built in the world’s supply chain, and multinational companies have a favorable opportunity to sell products to newly stuck in the middle class.

A few years after I arrived, China surpassed the United States to become the world’s largest market in Rolls Royce, General Motors and Volkswagen.

There was also a deeper justification.

As China becomes rich, the theory progresses, and Chinese people will begin to demand political reform.

Their spending habits will also help China to convert to a consumer society.

However, the first of its aspirations did not happen as China’s Government Communist Party strengthened the grip on power.

And China still relies on exports, but also plans to be openly more dominant, and the second is not fast enough.

Published in 2015 and the notorious policy Blueprint, Made in China 2025, has enacted a great national support vision of becoming a global leader in several major manufacturing sectors, from aerospace to ship buildings and electric vehicles.

So a year later, as an outsider for a complete political unknown US president began, China’s rise was repeated in the campaign trail that China’s rise deceived the US economy, led the Rustbelt decline and demanded the livelihood and dignity of blue -colored workers.

Trump’s first trade war broke the mold and shattered agreements. His successor, President Joe Viden, maintained most of his tariffs on China.

Nevertheless, even though there was no doubt in China, I did not do much to change the economic model.

China currently produces 60%of the world’s electric vehicles. 80%of the batteries that supply power to their own own brands and power supply are produced.

So now Trump is back.

What was not about all other air tariff measures recently launched by the US will be the biggest shock that was delivered to the existing global trading system.

The following things happen depend on two major questions.

First, whether China will take a negotiation proposal.

Second, it is assumed that China is willing to do so regardless of whether China is willing to create a major concession that the United States is looking for, including the complete inspection of the export -driven economic model.

When answering them, the first thing to say is that we are in the territory we are not completely occupied. So we need to be careful about how Beijing is likely to react.

But there is a reason to be careful.

China’s vision for economic power based on strong exports and strictly protected domestic markets is now closely related to the idea of ​​national regression and the superiority of the daily system.

Strict control of information spheres means that there is no possibility of dropping barriers to US technology companies.

But there is a third question and the US answer is a question.

Does the United States still believe in free trade? Donald Trump often suggests that tariffs are not just a means of ending, but a good thing in itself.

He talks about the advantages of US protectionist barriers in order to stimulate domestic investment, bring overseas supply chains home and raise tax income.

If Beijing believes that it is actually a major purpose of tariffs, you can decide that there is nothing to negotiate anyway.

Instead of advocating ideas for economic cooperation, the world’s two largest superpower can be in the fight for all economic superiorism of the winner.

If so, it will actually show a very dangerous future, very different from the actually shattered sculpture of the old consensus.