US and China on brink of trade war

The visit of the delegation headed by the US Trade Minister Wilbur Ross from Washington to Beijing is the last attempt of the world hegemon to settle trade and economic disputes with China before the trade war, RISS expert Vyacheslav Kholodkov pointed out. One of the problems complicating the situation is the contradiction between the goals pursued by the United States in its policy towards China: on the one hand, the USA seeks to reduce the deficit of bilateral trade; on the other hand, it tries to limit the technological development of China. The USA is trying to prevent China from becoming a leading global technological power.

“Speaking about reducing the deficit in bilateral trade, this can be done by supplying any US goods to China, including high-tech goods, for example, semiconductors. As for national security and the limitation of scientific, technical, and technological growth of China, it is necessary to limit the supply of American high-tech goods for Chinese industry as much as possible,” he said.

“President Trump in late May promised that in mid-June the list of Chinese goods that may fall under duties would be published. In response to that, the Chinese said that all agreements to increase the level of purchases of American goods would be canceled. Beijing also requires America to cancel repressive measures against the Chinese company ZTE,” the expert said.

“Such a tough and uncompromising position is explained by the strength of the Chinese economy. With the help of the program "Made in China – 2025" China intends to accelerate its plans for scientific and technological development. How will the US-China talks end? Will there be a trade war between the superpowers? What should we expect after mid-July? If this trade war begins, it will strike a blow to global trade and economy,” the analyst concluded.

China USA economics