TRUMP FIRED THE FIRST SHOT TRADE WAR BETWEEN CHINA AND US
2017-10-04

Trump signed an executive which ordered to authorize the U. S. trade representative to investigate possibilly unfair trade in China, especially in the case of intellectual property rights, which could hurt the interests of the United states. A stone stirred up thousands of waves, people have been waiting for the boots finally landing, but also does not rule out further follow-up action. Economic and trade relations between China and the United States have resumed.

In the early days of Trump’s controlling, China and the United States ushered in a honeymoon period of about half a year. The trade war between China and the United States was not predicted. There are many specific factors. For example, the United States hopes on the nuclear issue on the beginning of the Trump administration leveraging on China; internal challenges beyond expectations, no external energy “trouble”; and no one is available, the situation faced by Trump just took office, the cabinet team is highly unstable.

So, Trump had no ability to launch China “offensive”, but China was more clam during observation, taking a series of effective diplomacy to the United States, to a certain extent, resolving a lot of dissatisfaction with the Trump campaign to China .

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However, the US new government has been operating for more than half a year, and all three factors have changed. The differences in the North Korean nuclear issue has appeared, Trump’s economic team in place, a large number of secretaries has started to work, which provides the basis for the United States to “targeted” to Chinese.

So, at the moment, the United States is trying to investigate what is called “unfair trade”, which is a belated, but ultimately coming, trade conflict. Faced with the Sino US trade deficit of over $300 billion, Trump, who shouted “America first” came to power, must have an account of the country. And this time, he chose the problem of intellectual property rights to China, it is indeed China’s soft underbelly. In this regard, China needs to take proactive measures to provide a feasible solution to the unbalancing of China-US economic and trade relations.


China indeed is the largest country in the US trade, but the key to solve the bilateral economic imbalances is that increasing China imports from the US, rather than reducing China exports to the United states.

Energy trade is the largest emerging trade area in China also in the United states. China has become the largest energy importer in the world, and its dependence on foreign oil and natural gas continues to increase. Energy supply is urgently needed to maintain energy security. In recent years, the United States , the outbreak of the shale revolution, and thus strongly involved in the world energy trading system, may become an important energy exporter, China-US energy trading potential.

In addition, China-US agricultural products trade is also promising. There is a huge China grain gap, and China densely populated, land resources, especially arable land resources are particularly scarce, for efficiency reasons, China will need to rely on the international market to solve the problem of the supply of agricultural products. The United States is the most important agricultural country in the world, and the price of agricultural products is relatively low. China and the United States are highly complementary in the field of agriculture. Not only that, the United States also need to further relax restrictions on China’s high-tech exports, in order to expand exports of high-tech products to china.

However, whether China importing of US oil and gas mass or importing agricultural products in the US, or the US to relax restrictions on exporting of high-tech products to China, all depends largely on the mutual political trust between China and the United States, it is not a simple relationship between the market. Oil and gas trade and agricultural products trade are related to energy and agricultural security, and the export of hi-tech products also involves technological competition among major countries.

Therefore, in this sense, to solve the so-called China-US economic imbalances, “big deal” between the political and economic, relying solely on the economic sector negotiations about economic and trade issues between the world’s largest economy.