Friday, August 23, 2019
Bully in a China shop
Trump's trade war with China will end badly not only for the US but for the world economy as a whole. It was ill conceived from the start; a unilateral approach was never going to work especially against China which as it becomes more prosperous, is becoming less dependent for economic growth on exports. In liu of a coordinated effort, Trump chose tariffs which cause pain to both parties; bot only one has a political system that makes it vulnerable to the pain that tariffs and higher prices lead to. Because it is not a democracy, Xi is insulated to some degree from the consequences of the economic consequences of a trade war. China's political system, too, is better suited to a long game; just as ISIS and the Taliban know they can wait American presidents out, so Xi can look 2 or even six years down the road and know he will still be around after Trump has gone and the American electorate has had enough of the pain Trump's ill-thought-through economic bullying has caused.
Labels:
politics
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