I’ve been following the US China Trade war with much interest, and I wanted to take the opportunity to pen down 3 quick observations:
1. China is using this Trade War to define their relationship with the West for the 21st CenturyTo recap, in 2018, Trump levied tariffs on China, China retaliated, and this tanked the US and Chinese economy (and stock market). China and US agreed to a brief “ceasefire” in which they spent 6 months negotiating a “deal”. During this time, China also injected large stimulus into their domestic economy, the Feds paused all rate hikes in 2019, and the stock market recovered significantly. In May 2019, China US talks broke down, leading to Trump imposing additional tariffs on China. The official reason given by the US was that China had reneged on earlier promises, while China’s official reason was that they had 3
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