It seems that China is not setting its sight on its current trade dispute with the United States, but who’s going to sit next to the Oval Office next November 2020.
With costly tariffs that were imposed on Chinese goods, the world’s second-largest economy seems to be willing to ‘lose some things for now’ in exchange for a longer-term gain.
Friendlier US President
From weaponizing their yuan to suspending U.S agricultural product purchases, China is putting their businesses on a different edge. This time, in the edge of a cliff. But like a good old chess grandmaster, the current moves are nothing but a part of a much-desired goal, and for China, it’s a one-time Trump presidency. In other words, a ‘friendlier’ US president next 2020.
China is willing to accept a series of setbacks as long as it will undermine the trust and confidence of voters over current U.S. President Donald Trump. China would even be willing to bear decisions that would result in collateral damage to the global economy and financial markets.
But in this global chessboard that China is playing with, does it really move its pieces in the right places, or would its sacrificial pawns backfire in the end?
With tough measures that China is doing today, it might not matter if the next US president will be a Republican or a Democrat. On top of that, a further halt in China’s growth (thanks to their recent decisions) would certainly pose a danger to their economy. Furthermore, with a second-quarter GDP growth which shows the slowest year on year increase for a quarter in at least 27 years, China’s balancing act should be more careful.
Everyone is watching for both countries’ responses. Whatever they decide to do, it will not only affect their respective country but would ripple its way on other economies as well.
Also read: US-China Talks, Is There Any Improvement?