The U.S./China Trade War Isn’t About Trade
Annie AcMoody, an economist for Western United Dairymen, argues the U.S. trade war with China isn’t really about trade or even about tariffs. Say what?
“It’s about which economic model is going to be the leading economic force in the 21st Century,” she says. “In one corner, the U.S. led, liberal market-based economy, and in the other corner, the state-directed Chinese model. It’s a systems war.
“The deception game has high stakes goals: 1) evening out trade deficits, 2) preventing China from stealing between $3-400 billion of intellectual property every year, and 3) forcing China to play with the rules of the World Trade Organization.”
What the U.S. is trying to do is to fundamentally change the structural rules by which China’s economy operates, she says.
“In order to accomplish this, however, the Chinese ruling class will have to let go of some control and come to the middle,” AcMoody says. “There are no elections in China, however, so the potential for middle ground is pretty bleak.”
The first country to blink in this contest is the country whose economy blinks first, she says.