US and China May Not Want a Deal: Bloomberg

The trade war between the world’s two largest economies is escalating, even as talks continue in Washington, DC, and neither China nor the United States wants to back down. The US is raising tariffs on $200 billion of Chinese imports from 10 to 25 percent, and China promised to retaliate. Leaders on both sides appeal to nationalistic supporters, expressing confidence that the other side will hurt more. “Indeed, in many ways it’s the tariffs themselves, rather than a hoped-for deal to replace them, that will best deliver the economic policy platform that put President Trump in power,” explains David Fickling. Trump, intent on protecting on domestic producers and eager for extra revenue, could extend the policy to other trade partners. Fickling explains that the US goal is intellectual-property protections and reducing forced technology transfers, joint-venture requirements, and protections for state-owned enterprises, all of which would make China a more attractive for multinational investment. China pursues economic and technological dominance for its population of a billion-plus. Fickling concludes that failure to settle trade disagreements could heighten hostilities between China and the United States in other areas. – YaleGlobal