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ChinaDiplomacy

Why NBA star LeBron James is a player in the US-China trade war discussions

The US National Basketball Association has more than a dozen media partnerships and licensing agreements in China, including a five-year, US$500 million pact with Tencent

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The Cleveland Cavaliers’ LeBron James (left) and the Golden State Warriors’ Stephen Curry (right, both seen on Sunday) could become important figures in the US-China trade war due to the popularity of basketball in China. Photo: Kyle Terada/USA TODAY Sports via TPX
Bloomberg

While LeBron James and Stephen Curry are battling on the basketball court in the US National Basketball Association (NBA) finals, they’re also on the front court of the US-China trade tussle.

That’s because American licensing activities in China have been increasing, and deals by the NBA and other sports, entertainment and software groups have helped fuel a trade surplus – in services, at least – between the US and China.

The overall gap between what China ships to the US and what it imports is one of US President Donald Trump’s chief targets in the trade fight. The US$38.5 billion advantage the services trade provided the US in 2017 barely offset a 10th of that wider deficit, but it’s still a key component in the relationship between the world’s two-biggest economies.

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That’s why James and his Cleveland Cavaliers and Curry’s Golden State Warriors are important players.

The NBA has more than a dozen media partnerships and licensing agreements in China, including a five-year, US$500 million pact with Tencent Holdings, the country’s biggest social-network and online-gaming company.

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