US wrong to think it can win a trade war

The signing of a memorandum to impose tariffs of up to $60 billion on Chinese imports and the demand that China reduce its trade surplus by $100 billion by US President Donald Trump is, to say the least, a reckless act. But it reflects the United States’ long-term comprehensive strategy toward China.

The US aims to reshape its manufacturing industry and solve its domestic problems in the short term through trade, and diplomatic and military measures, in order to “make America great again”. It also wants to interrupt China’s industrial upgrading and prevent it from realizing the great rejuvenation of the Chinese nation.

First, by attempting to ignite a trade war, the US is testing the efficacy of its overall strategy vis-a-vis China. For example, the US has raised tariffs of Chinese products such as new generation information technology products; high-end machine tools and industrial robots; aerospace, ocean engineering, new energy, high-tech shipping and high-speed train equipment; agricultural machinery; new materials; biological medicines and high-performance medical equipment. As US Trade Representative Robert Lighthizer said, these products are made by the major development industries listed in Made in China 2025 through which China aims to achieve independent research, development and application in two to three years.

... Trump’s move will only make US citizens’ life more difficult and, to a certain extent, neutralize the effects of his tax cut policy.