Many news reports have missed the extent to which the conflict between the U.S. and China increased over the last week, and the conflict involves more than trade. This article reviews some of the key developments. These conflicts are likely to continue, as the goals of the U.S. and China leaders are incompatible and neither side is likely to back down. Expect China to continue to depreciate its currency, build relationships with other countries around the globe, and enact fiscal stimulus in a year or two.
What lies behind a series of administration statements and actions was a deepening conviction that Trump’s predecessors have done too little to respond to years of unfair Chinese trade practices, cyber transgressions, rapid military growth, growing technological prowess and the underlying strategic consequences of the so-called Belt and Road economic initiative, whose aggregate investment and loan figures are a multiple of the Marshall Plan.
Four pieces of news this week underscore the far-reaching, multi-faceted nature of the Trump administration efforts aimed at China, with senior officials promising more in the weeks ahead.