Trump’s empty China talk hurts stability

The sharp rise of the stock market since Donald Trump’s election is something he and his supporters often cite to show how he has helped the economy. But the president’s bluster about trade wars and the important U.s.china relationship has so far fueled only chaos. Consider last week: The Dow dropped 799 points Tuesday then had a wilder day on Thursday, closing down 79 points after falling as much as 784 points.

There’s been global fallout since Dec. 1, when Trump asserted that he and Chinese President Xi Jinping had cut “an incredible” deal in which China would drop a 40 percent import duty on American cars in return for the U.S. dropping a planned increase in tariffs. Initially, markets were thrilled. But as it became clear that Xi had agreed only to a 90-day truce on trade issues — not remotely what Trump claimed — investors panicked. The Dow has fallen by 2,000 points from its 2018 high, wiping out nearly all of its gains for the year.

Washington has valid reasons for being upset with China’s trade practices. China tramples on laws and agreements, not just by trading with international sponsors of terrorism and subsidizing exports but by stealing intellectual property and secrets from U.S. tech firms.

But Trump has stated that “trade wars are great and easy to win.” It’s easy to declare nonexistent wins. It’s far more difficult to stabilize the relationship between Washington and Beijing with the care it demands — and the world needs.

The San Diego Union-tribune