Why the US isn’t winning the trade war with China | FT


Donald Trump tweeted this week
that the US-China trade war is a beautiful thing to watch. His view is that
Washington is combating China’s sharp
practises, while helping attract massive amounts
of money into the US through investments. But key data from the trade
war is telling an almost opposite story. If you look at
the numbers alone, it is very difficult
to make the argument that the US is winning. In the year to the end of
June, US exports to China slumped $33bn or 21 per cent. Chinese exports to
the US, by contrast, actually grew a little,
rising one per cent or $4bn. In July, according to
numbers just announced, China’s surplus with the
US grew still further, and over the first seven
months of the year, China’s total surplus
was worth a hefty $168bn. This is exactly the
outcome that Mr Trump was determined to
avoid when Washington imposed a flurry of tariffs
against China last year. And the relative lack of
pain being felt by China could also go some
way to explaining why Beijing seems fairly
nonchalant when it comes to negotiations with the US. It’s clear that
Washington wants to talk. Larry Kudlow, the top White
House economic advisor, said this week that
the US side was preparing the
Chinese negotiating team to come over in September. He also held out the
possibility that there could be some softening
in Mr Trump’s threat this month to impose new tariffs
on Chinese goods worth $300bn. For now though, Beijing
is not sounding too keen to concede to
Washington’s demands.

100 thoughts on “Why the US isn’t winning the trade war with China | FT

  1. Sun Tzu said every battle is won before it is ever fought. I wonder how British trade between these two affects the trade war or if it could tip the balance?!

  2. But he is a genius. He said so. Kudlow doesn't have a degree in economics and Peter Navarro wrote the classic "If It’s Raining in Brazil, Buy Starbucks”. How he didn't get the Nobel for that is beyond me. These people are geniuses.

  3. Not surprising the leftist globalist financial times leaves out a few key issues and they're biased anti Trump reporting. no mention of tariffs and the money that brings in, no mention of Industries pulling their factories and Supply chains out of China, and no mention of the contract in Chinese economy. Trade war is much more then these committed globalist ideologues at the financial times our reporting. I'd ask the financial times to be a little more fair and they're reporting but that's not what they're all about they have a leftist globalist anti President Trump agenda. Anyway not sure why YouTube keeps shoving Financial Time videos down my throat I'm not subscribed to them I guess I'll just have to keep reporting them for journalistic abuse

  4. China has been buying american assets, not investing it. Foreigners are owning large parts of the U.S. This "war" is necessary if we want to keep America.

  5. Trade war is easy to win, and we are so sick and tired of winning that we need to throw up otherwise the belly will explore. Fox.

  6. Trump doesn’t care about facts or fiction, all he cares about is what himself wanted to do. Everything he does is a one man’s world.

  7. And to top it off, since Trump took office, he's increased US debt by an additional 1.7 trillion dollars which he promised to reduce during his campaign. Everything is going in the opposite direction he predicted. We're now currently at an all time high of 22.5 trillion dollars in debt.

  8. I tried to explain this to a Trump supporter. It was pointless with him, so I'm sure it's pointless with Trump himself

  9. Dumb americans dont understand taxation if u call it a tariff…also they think china is paying it…lolol! What do they teach over there in high school?

  10. In fact, Trump wants to get a tax, and not only collect taxes from China but also collect taxes from other countries.

  11. The USA is far from perfect, in fact the whole Western world has its governing and cultural flaws
    But he 1 thing that sets the West apart is not it's human rights record, nor even it's social inequalities. 
    It's the believe in "balance of power" where no one ruling party can control it all.
    Why was Japan/S Korea able to become some most technologically developed nations in the world?
    Because they Embraced democracy, human rights, balance of power which led to their own "democratic intellectual innovation" without having to break any rules nor stealing it from other nations.
    Democratic intellectual innovation China lacks, and it's clearly not so confident they can create it without having to steal it, not just from North America, but from the EU & Japan & Korea
    The Chinese communist government takes hypocrisy to an entirely new UNHEARD of level by claiming innocence in IP theft, by pro-claiming "Mutually beneficial by equal cooperation with China" by denying the existence of Uighur Muslims imprisonment in re-education camps for years to the face of the world while with its actions the Chinese Government clearly proclaims the complete opposite and with its actions it clearly shows it has world domination aspirations by financially dominating ALL of the world's most important technological Industries and having the world depend on the Chinese government for exclusive services and industries only China will be in place to provide. It'll be a World-Monopoly which will evolve from economic, to military of course.
    The Chinese have very wise sayings, here is an American saying I learned and I'm very proud of Having learned it
    "Actions speak louder than words"
    Right now the only balance of power rising China has is the USA by clearly not such coherent actions, but actions nevertheless, by a NOT so impartial NOR well-liked leader but opposition to total power nevertheless, 
    If you know your history you would know that nobody liked the Romans in their own generation (and rightfully so) for just the same reason, they were the ones calling the shots, albeit by totally brutal methods but in an entirely different era of the world
    Regardless, the Huns, the Germanic tribes & all the rest of the peoples that displaced the Romans out of hate, were unable to recreate anything closely equal to what the Romans achieved,
    What did we get out of the fall of the Roman Empire?
    A thousand years of generations living in Dark Ages, Generations that had plenty of time to look at the ruins of technological innovations the Romans created & left behind, plenty of time to look back with a clear understanding that past Generations had a higher "standard of living" which is the reason why the Western world to this day praises & admires the achievements of the Romans
    That is exactly what the world will get out of displacing the USA as the dominant global power, "the fall of democratic intellectual innovation and a new Dark Age for Human Rights and freedom of choice" by replacing it out of pure hate, NOT reason, with an oppressing authoritarian communist regime, who's self-interest outweighs everything and everyone in order to ensure the party's survival
    Chinese civilization, Chinese people are not rising and are not inheriting the political power that the USA has. They are not filling the vacuum left behind.
    It is the one-party communist government with too much power
    Here is another outstanding American saying "Better the devil you know then the devil you don't"
    Ask yourself this, given China's record on human rights, do you believe we would live in a better world 50 years from now? 100 years from now? If the Chinese communist government was the most economically / politically / military dominating power on Earth?
    America has a multitude problems to address, some call America the devil,

    Which devil do you know better?

  12. How can the Chinese keep up with Trump FLIP-FLOP?
    After that Trump blamed China for the failure. Trump should stop his brinkmanship nonsense and give his negotiating team a leeway or power to make their own professional decision.
    Now they all looks like FOOLS.
    Example.
    An agreed 100 page trade deal became 150 page after US team returned. Chinese team cut it back to the original 100 page. Trump was furious and threatened more tariff. he assigned all the blame on the Chinese for reneging and NOT buying lots and lots of farm products.
    That is why China team is so fed up and insisted Trump withdraw all its tariff before any meaningful discussion can begins.
    Meanwhile Trump tweeted how GREAT USA economy is and China is collapsing.
    Hello Hello China still has a net surplus current account nation unlike US which is net account deficit nation and is now at over 1 trillion USD as for 2019 so far.
    Account deficit is not the same as trade deficit.
    That is why US stockmart is collapsing when they find out the trade deal is not in sight. China as I have always say is preparing to bypass and forego US trade since it involved so many lies and badmouthing by the ignorants and US Propagandists e.g. IPR theft and Forced Technological Transfer.

    To TRUMP, it means he will lose his face.
    Trade War is easy to win he wins. 👎😠

  13. I saw a lot of comments saying how this trade war is making many business move out side of China. I found that very funny, because I runs a small manufacturing business and there are so much more to consider for example: the USA only holds 4.8% of the world population while China has 19%. China is only having trade war with the USA it is not with the rest of the world. Would I spend big capital to move my production for 4.8% of the world market? Not to mention I need to train new people setup new factory and ect and who know when this trade war ends which means completely waste of my time…. Trump like to talk about how good this trade war is going but the numbers just does not add up… I means even if the USA completely stop all imported from China and China will only supply to its internal market and the rest of the world I think 95% of the world population is still way bigger than 4.8%…

  14. Trade war with china is a good thing for the American and the others as open wide markets .. many others will have chance to compete .. the only losers are those big crooks who had made massive profits over the years dealing with china ..

  15. President Duterte of the Philippines said very brilliantly.

    When you choose the United States, you choose war. If you choose China, you choose peace!

    The United States only sell one product to the Philippines,

    that is, weapons, and those are second-hand goods that are discarded. But the price is still very high.

    In China, the output is sorghum, infra-structure, and colorful products. Only fools and well-known people can't see it !

    The United States needs to create hatred, create turmoil, create war, create investment panic, and let the dollar return to US investment on a large scale, so that people, in hatred can buy American advanced weapons at any cost !

    The United States is the most evil country in the world. Because it wants to maintain the peculiar flow of the dollar, in exchange for dollars for the American people to do nothing.

    In order to earn back the dollar through financial games and the sale of weapons, it must _constantly create turmoil and strife_.

    Americans are embarrassed :

    They said that in the 239 years of the founding of the United States, 222 wars were fought.

    No American president is a peace president. Every president has participated in and launched a war at least, and his hands are covered with the blood donation of countless innocent people.

    The United States likes to advertise that it is a country that speaks of democracy and speaks about human rights.

    Actually, it is a sinful country against humanity against human rights and anti-democracy !

    I don’t know how many people were killed by their missiles. It is a veritable country that eats human flesh and blood.

    Friends, seeing here, you should understand why the United States must not go with China!

    Because the United States singing peace and development is a fake.

    China is really trying to build a community of human destiny. It is really using its increasingly powerful technology, military, and economic capabilities to maintain peace.

    Of course, the United States is so angry that its eyes are green with jealousy.

    The world is peaceful, how the United States is confused !?!

    And China still wants to be the number one technology powerhouse. This isn't good for the United States?

    Therefore, the future struggle between China and the United States is that the world and mankind are the Chinese road to peace and win-win, or is it the second American road in the United States?

    I firmly believe that China's ability to represent the justice and conscience of mankind, to compete for the dominance of high technology, and to strive for high-end manufacturing is a matter of China's own and related to the destiny of the world.

  16. But you have been saying negative unfounded things on the Trump administration since 2016. How much of what you are saying is TDS? The US has far more amo in this war. Yes people and industries are going to be hurt, but its better to fight while you still can, as past policy didnt help. Kick the can down the road and pay a higher price, China has far more to lose esp with their 2025 plan. The US economy remains strong – lets see what will happen when manufacturing moves away from China to India and other low cost markets. China is waiting and hoping for a Democratic President, Biden signaled that he would be soft on China.

  17. I don't care if you think the US is winning or not. what I care is I think the US is winning. believe me. I am the Messiah. the King of Israel. the Chosen One.

  18. Since only 10% of US GDP is tied to exports (vs. ~20% for China) the US is in the stronger position. Give it time. This is a long game.

  19. That's naive to think China won't feel Tariffs on their LEAD exporter lol
    China has cheap labor, copying and manufacturing… no innovation and no reason to stay in China when they don't bring business to US.. we should be more reliant domestically..

  20. What America has been doing to China in this evil war is simply bullying. Every country can see that. The world is returning to the order of the forest – violence, robbery, bullying, and more to come.

  21. Let's staightforward. China cock suckers always badmouth America and other countries altbough they don't even know freedom in China. We live in a world where people become.zombies and worship dictatorship over Freedom. We should support Hongkongese who awaken consciousness of people all over the world who forgot what Freedom is. God bless Hongkong protesters.

  22. Trump filed for bankruptcy x6 for his companies. His supporters want him to bring his bankruptcy expertise to run the country. Good luck.

  23. China invented 45 trillion dollars this is a joke the secrecy of China hides the true story of its financial health

  24. Lol looks like you may have got this one wrong!! Today china is asking for a deal.. Trump did add the new tariffs against China and didn't back down. .. The stock markets are up… For now.. Hopefully we can get a deal.. But the last thing American needs to do is give in to china!! They have been stealing ate technology for too long and devaluing their currency

  25. ahhh a shill telling it how it is.get this for DEFICIT. the united snakes is like the school bully who wants to TRADE baseball cards but he doesn't have any, he has a pocket full of rocks, but he will not trade those rocks with you because you are not in his club, so now he uses threats and intimidation to force you to GIVE him your cards and then pretends to call it "trade".nobody wants your GMO poisoned agricultural products, now, what else do you have to TRADE for everything you outsourced to be made in China Mr united snakes?! If YOU lack things that l CAN buy or want to buy, who's fault is that, certainly not MINE!and as for intellectual propriety, If you are silly enough to want to manufacture in their country because of low wages and higher profits, and they demand access to your trade sekrets, you have 2 choices, hand them over. or DON'T GO THERE.. SIMPLES.. but no.. in the pursuit of greater profits, the united snakes corporations sold their souls… and now they are crying into their oatbran, sorry, their GMO soy products!

  26. MCGA – Make China Great Again! Xi is laughing all the way to the bank. US cannot take the pain. China can easily wait it out. Trump is being checkmate. Trump now knows that it is not easy to grab China. LOL!

  27. Trump recession! The most risky market should be US, The United States is on the eve of the next financial crisis and huge recession. 1.US bond long-short term interest rate upside down 2.Trump tax cuts cause false prosperity in the stock market 3.The stock market is to be pierced by the trade war 4.Global De-dollarization spread 5.Global countries resurrected Gold, like Russia, Germany,UK, Japan, India etc
    6.US huge housing bubble growing 7.Trump already lost the trade war, the ban will greatly affect the profits of US companies we will see the recession in next few months, abandoned the USD assets, buy gold.

  28. I am so tired of winning. Where ever I look the US is winning at everything, and we are winning biggly. Casuse we have a stable genius running our country. LOL

  29. How can you trust any statistics coming out of china? Look at the yearly migration rates if you want to know who will win this trade war. Sir, you are a moron

  30. Trump are making China stronger. He taught a good lesson to all Chinese, that is : Do not rely on supply from other country. The Chinese companies poured more funds into R&D.

  31. Coming to think of it, China's becoming great again (it once used to be an economic superpower that dwarfed every other country).
    Also, I think they're winning, and we're tired of their winning, as it allows their authoritarian regime to claim they're better than a democracy like USA who elected trump.

  32. Stop the nonsense and look at Dept of Commerce numbers. bea.gov
    US deficits down and personal income up everywhere but N. Dak, where it's flat. Ignore the vested interests & look at the numbers. Don't be a pawn.

  33. Red China is a huge dumpster fire stinking up the world. We need to stop all trade with communists. We can make our own junk. All these companies in the US who sell chinese products can go out of business and then go straight to hell. Like Trump said, "We'd be better off without them.

  34. Something strange going on as well. Many Chnese have entered the US working in Massage parlors nail salons and restaurants
    Looiking to marry and have green cards.

  35. When he said the U.S. is winning, he is referring to the government income from the increased tariffs he received. Who paid for these tariffs is not his. On Ern.

  36. surplus for us means the manufacturer in China can meet the high-quality standards with lower costs than other countries. it's impossible to switch all that goods away from a country and it will definitely hurt both countries. China gets fewer exports and US gets higher costs for goods

  37. Trump thought tariff war was easy to win. China will not be bully by a white business man, who only has yes people's around him and obey his dumb order?

  38. China should wait and do nothing until Dec 15. Americans cannot take pain. Maybe after Christmas, but then there is New Year, etc. So, China should just wait until after US 2020 elections. By which time all the Farmers should be freed after filing their chapter 12.

  39. Trump has to concede that his trade war strategies appear to do more damage to the global economy than good. Also, he has sold 50% of Americans a Utopian Fallacy that will hurt America more in the long run than do good for his country and it's people. Every nation is feeling the ripple effects of this trade war, and seriously who is really benefiting from this type of economic conflict? You are going to have to do better than this if you want a second term in power sir.

  40. So much winning! White incel-nazis jacking off to the coming economic downturn. So other people will also lose their jobs and become sexless losers living in mummy’s basement!

  41. The American people are just stupid. We put a fool in the white house and deserve all the bad that can happen. I will make it simple for the dumb asses. A trade war with china is really stupid because they have over a BILLION PEOPLE. We will lose that war every time. And if they want to go full-on trade war with us it will kill this country. Time to get that fool out of the white house.

  42. Trump's administration made a mistake going into a trade war with China. Indians military is way less capable to deal with China.

  43. The professor has some very accurate and in-depth view of China economy. He is absolutely right about one thing – Beijing will prevent a financial crisis with all costs. For people out there wishing for a sudden collapse of China, sorry folks, it won’t happen. CCP will spread all the financial risks, debts or suffering to its common people. It’s a simple trick to pull on its people. And the best part is no matter what the government do, people will cheer and appraise it even though they could suffer financially or be starved to death. Chinese population is very obedient and easy to manipulate. It makes the government’s job to prevent any crisis much easier. Plus they have the control of the media, the banks, the police, the military, the schools, the hospitals. You name it they have it. So no, China won’t fall overnight. CCP will survive for a long time. And the people will go with whatever the decision the CCP makes. They will go down together like in a grinder.

  44. China is Civiliazation and have been around for 5000 years. I seriously doubt a little economic downturn will cause its collapse. The US is empire and all empires have collapse through history!

  45. This kind of argument only depend to whom you listen to. The truth is that China is taking advantage of many countries not only the United States and this kind of Chinese behaviour should be dealt with. The United States started it and hopefully many countries will follow it.

  46. Get'em China!!!! B.R.I.C.S on the rise!!! Also China, more fentanyl please!!! We have a thirsty market out here in the U.S., so keep'em coming baby…👍😀

  47. In addition to narcissism and big mouth, Trump and his cabinet have no international perspective! Trump knows nothing about China and the world. Trump is just a frog at the bottom of the well, does not understand the economy, international trade, and diplomacy. He is a person of no credit. His election is the sorrow of the Americans,
    He will only accelerate the failure of the United States.

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