sharp downturn<\/a> in Chinese stock markets amid rising trade tensions is scarcely a threat to his rule. His party-led government has a big say over strategy and investments plans at giant state-owned enterprises, which control 40 percent of China\u2019s industrial assets and some of the world\u2019s biggest banks.<\/p>\nStill, anti-trade rhetoric underpinned Trump\u2019s election win, and if anything the former New York real estate developer has doubled down on using tariffs in spats with both foes and allies. Although polls suggest Trump faces difficult mid-term elections in November, a fight to replace a U.S. Supreme Court justice may prompt his political base to overlook slightly higher monthly bills.<\/p>\n
Economists and trade experts who testified in June before the U.S.-China Economic and Security Review Commission, set up by Congress to track the national security implications of trade with China, say tariffs are likely to inflict a lot of economic damage on both economies and depress global trade.<\/p>\n
Great Unwinding<\/h3>\n
China will also return the favor — Beijing has announced plans to target U.S. auto, aircraft, plastics and chemicals sectors — and \u201cthe imposition of tariffs will not solve the underlying Chinese distortive behavior,\u201d warned Linda Menghetti Dempsey, vice president of International Economic Affairs at the National Association of Manufacturers.<\/p>\n
Instead of using tariffs, the U.S. could\u2019ve sought to join with the European Union and Japan to bring a case against China at the World Trade Organization. But that\u2019s unlikely after Trump slapped tariffs on EU nations and Japan, while also undermining the WTO. His withdrawal from the 11-nation Trans-Pacific Partnership trade deal removed another key device to alter China\u2019s behavior.<\/p>\n
Some prominent academics are calling for more drastic measures to undercut China\u2019s practice of trading market access for technology transfers, such as unwinding Asian supply networks in high-end tech sectors.<\/p>\n
Harvard Business School Professor Willy C. Shih favors tax incentives, and even setting up import processing zones in the U.S. to repatriate offshore suppliers for the likes of Intel, Apple and Microsoft. \u201cIt would strengthen our ability to sustain the most advanced semiconductor fabs in the United Sates,\u201d Shih said.<\/p>\n
In the end, the U.S. and China economic rivalry probably won\u2019t be decided by administrative law judges or trade negotiators, but in the global marketplace. Right now, the U.S. still enjoys a lead in many tech and manufacturing sectors, particularly aerospace and biotech.<\/p>\n
Yet the days when China could be dismissed as merely a low-wage assembly center for Western manufacturers are long gone. This is a country on what it views as a historic mission to become a 21st century economic power, and the contest is just beginning.<\/p>\n
<\/p>\n
Read more at Bloomberg<\/a>.<\/em><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"Chinese President Xi Jinping has an ambitious master plan for his country\u2019s transformation into a wealthy, technology-driven global economic power. And U.S. companies need not apply. That\u2019s why the current trade rumble between the U.S. and China, in which the Trump administration is threatening to slap tariffs on $34 billion of Chinese imports and Beijing […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/blackopspartners.com\/wp-json\/wp\/v2\/posts\/1726"}],"collection":[{"href":"https:\/\/blackopspartners.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blackopspartners.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blackopspartners.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/blackopspartners.com\/wp-json\/wp\/v2\/comments?post=1726"}],"version-history":[{"count":0,"href":"https:\/\/blackopspartners.com\/wp-json\/wp\/v2\/posts\/1726\/revisions"}],"wp:attachment":[{"href":"https:\/\/blackopspartners.com\/wp-json\/wp\/v2\/media?parent=1726"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blackopspartners.com\/wp-json\/wp\/v2\/categories?post=1726"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blackopspartners.com\/wp-json\/wp\/v2\/tags?post=1726"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}