Beijing’s policy predicament

UBS
By August 28, 2018 02:03

Beijing’s policy predicament

The US may try to contain China's industrial advancement by using trade barriers, but in the end it cannot stop China's ascent up the valueadded industrial ladder. 

The US administration has asserted that its trade engagement with China is about extracting fairer terms. It has stated that unfavorable tariff rates and China's state support have accelerated the hollowing out of US manufacturing. But what if the true intention is not just to reshape their trade relationship, but to slow or disrupt China's rapid metamorphosis from low-income country to Asia hegemon?

Such undercurrents are detectable in President Donald Trump's line in NAFTA negotiations and in views expressed by White House's China hawks like Robert Lighthizer and Peter Navarro, who co-wrote the book "Death by China." This scenario presents significant risks to China's nearand long-term economic prospects as well as Asia's. 

UBS
By August 28, 2018 02:03

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