Trump playing with fire straight from the dragon’s mouth
It has been no secret that Trump has not always had the cleanest relationship with China and tensions have only increased since his win in the U.S election. From a time when he accused China of money laundering and “inventing global warming to make U.S manufacturing non-competitive,” he has now gone on to threaten trade agreements and overall peace between the nations.
Trump has now switched his tactic to one that is increasingly aggressive. He has threatened multiple times to pull out of the Trans-Pacific Partnership (TPP), although political advisors believe he is so more talk than action. Many believe that he is playing with leverage to renegotiate terms that would better suit the U.S.
But “we’re entering an era where I wouldn’t be surprised to see the U.S. government being less shy about applying state power to achieve what it sees as the national interest,” said John Minnich, senior Asia-Pacific analyst at consulting firm Stratfor.
Upon becoming president-elect, Trump has shown fear in his actions relating to China and the competition they present to the U.S. Both China and the U.S have such rapidly growing economies that could be the groundwork for a mutually beneficial partnership between the nations. Now given that opportunity, some experts are concerned that the approach Trump’s advisors are using could cause permanent damage to U.S-Chinese relations.
“There’s definitely this idea that state capitalism in China gives them a negotiating advantage” Ian Bremmer, a political scientist and founder of consulting firm Eurasia Group, deliberated regarding trade agreements. “When the United States tries to negotiate, they get undercut by companies that are inherently unpatriotic, because of their fiduciary responsibilities” to investors. “And Trump wants to change that.”
Learn more about trading stocks at: forex