The trade negotiations between China and the US might be in their endgame, but the differences are still huge. The US wants China to stop running their economy as they have always done, says economist Arthur Kroeber, author of China’s Economy: What Everyone Needs to Know®, to the Asia Society blog.
The Asia Society blog:
In addition to participating in trade talks, the Trump administration has restricted investment by Chinese companies in the United States and tightened export rules, steps that make a grand bargain between the two countries more remote in the short term.
“From the Chinese perspective, it looks like the U.S. is asking them to abandon a basic method of running their economy as well as implementing a containment strategy,” said Arthur Kroeber, an expert on the Chinese economy at Gavekal. “I think that even if we get a deal on trade in the next 30 to 60 days, it’ll be narrowly constructed and there will still be a lot of sources of friction.”
For Trump, a president known to boast about his negotiating prowess, even a limited deal with China may be enough to suit his needs. But the fundamental differences between the world’s two largest economies seem likely to remain an issue throughout the rest of his administration — and beyond.
Are you looking for more experts on the still ongoing trade war between China and the US? Do check out this list.