Today’s U.S. trade deficits are driven mainly by capital flow imbalances. Tariffs are less efficient and only work by distorting the real economy and rearranging bilateral imbalances.
While foreign investment usually benefits developing economies and creates local economic benefits in advanced economies, it generally does not benefit advanced economies on the whole except in very limited cases. On the contrary, foreign investment in advanced economies is more likely to lead to higher unemployment or rising debt.
The new round of tariffs has put U.S.-China trade negotiations on hold. Just a month ago, a deal to end the trade war was deemed likely. So why did this process unravel so quickly and what is the way going forward?
Washington and Beijing are not in a new cold war yet, but there is definitely a cold-war mentality at work that may diminish both sides’ capacity to manage crises effectively.
Whether President Trump is misguided in pursuing tariffs and using them as leverage with the Chinese government, America’s continued drive to levy penalties is less about fixing a trade problem than about changing China’s investment rules.
What are China’s interests and influence in bringing about a durable settlement of the North Korean nuclear crisis and how can Washington shape the future of North Korea vis-a-vis China?
The U.S.-China “trade war” may give way to a “tech war” as regulators and firms battle over emerging technologies, standards, and whether America or China will dominate future industries. Outside Washington, the relationship between Chinese and American business is complex and changing fast.
China’s global strategy has been met with strong pushback. Despite the recent Trump-Xi meeting, the U.S.-China relationship is unlikely to show sign of improvement for quite some time. Where does this leave Europe?
The United States has long seen Europe as wishy washy in its response to Chinese expansion. But the EU’s interactions with China are becoming much more hard-nosed.
Questions remain about how committed the Chinese Communist Party (CCP) is to continue “reform and opening” even as Xi seeks to advance CCP control in every sector.