Trade War between US and China Intensifies
President Donald Trump’s distaste for China’s economic schema is not recent news. Ever since his presidential campaign in 2016, President Trump did not shy away from criticizing the Asian country’s economy. However, the situation is becoming more grave as the economic ties between the US and China seem to have encountered a dead end.
"They lived too well for too long and frankly I guess they think that the Americans are stupid people. Americans are not stupid people." the President could not have been more candid about his opinions. President Trump is immensely proud and satisfied with the tariffs and sanctions he has placed on China and the ensuing results. “I put $250 billion worth of taxes, or tariffs, on China and it's had a big impact. If you look at their economy now it's a whole different ball game.” the President remarked.
President Trump clearly indicated that the trade war is not over yet. He will continue to pursue restrictive measures on the economic ties between the two nations until China is, in his opinion, ready to negotiate. “They want to negotiate, they want to negotiate badly, but I told them, 'You're not ready yet. You're not ready yet’ ”.
In addition to all of this, a Chinese intelligence officer was arrested in Belgium based on espionage charges. Yanjun Xu illicitly endeavored to unveil trade secrets from American companies such as GE Aviation. Such an unwanted incident will undoubtedly further scar the economic ties between the two nations. The Trump administration is known to have pursued a major escalation on the detection of Chinese spying.
Despite the tensions, it has been reported that the White House has taken the initiative to set up a meeting between President Trump and the Chinese President Xi Jinping. There have been many questions regarding whether the two leaders will formally meet in the Argentina G-20 summit scheduled to take place next month. In response, Lawrence Kudlow, the National Economic Council director, stated that although productive steps are being taken, nothing has “ been set in concrete”.
What does remain set in concrete,however is that the trade war between the two largest economies is nothing short of reality. Given the President’s motives and the current situation, Kudlow expressed his view quite succinctly “ I don’t see an end to the trade war.”