People walk past a poster featuring Chinese President Xi Jinping with a slogan reading "Chinese Dream, People's Dream" in Beijing. Xi’s medium-to-long-term plans, in particular its plan to move up the value chain and compete directly with the US in manufacturing through the Made in China 2025 campaign, are the true targets of the US trade war, rather than trade imbalances. Photo: AFP People walk past a poster featuring Chinese President Xi Jinping with a slogan reading "Chinese Dream, People's Dream" in Beijing. Xi’s medium-to-long-term plans, in particular its plan to move up the value chain and compete directly with the US in manufacturing through the Made in China 2025 campaign, are the true targets of the US trade war, rather than trade imbalances. Photo: AFP
People walk past a poster featuring Chinese President Xi Jinping with a slogan reading "Chinese Dream, People's Dream" in Beijing. Xi’s medium-to-long-term plans, in particular its plan to move up the value chain and compete directly with the US in manufacturing through the Made in China 2025 campaign, are the true targets of the US trade war, rather than trade imbalances. Photo: AFP
Aidan Yao
Opinion

Opinion

Macroscope by Aidan Yao

China needs to put its house in order as the trade war goes from bad to worse

Aidan Yao says the China-US trade war is likely to continue, if not worsen, since it is rooted in a competition much deeper than trade imbalances, and therefore the Chinese side needs to prepare for the worst

Aidan Yao
Aidan Yao

Updated: 11:50am, 16 Aug, 2018

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People walk past a poster featuring Chinese President Xi Jinping with a slogan reading "Chinese Dream, People's Dream" in Beijing. Xi’s medium-to-long-term plans, in particular its plan to move up the value chain and compete directly with the US in manufacturing through the Made in China 2025 campaign, are the true targets of the US trade war, rather than trade imbalances. Photo: AFP People walk past a poster featuring Chinese President Xi Jinping with a slogan reading "Chinese Dream, People's Dream" in Beijing. Xi’s medium-to-long-term plans, in particular its plan to move up the value chain and compete directly with the US in manufacturing through the Made in China 2025 campaign, are the true targets of the US trade war, rather than trade imbalances. Photo: AFP
People walk past a poster featuring Chinese President Xi Jinping with a slogan reading "Chinese Dream, People's Dream" in Beijing. Xi’s medium-to-long-term plans, in particular its plan to move up the value chain and compete directly with the US in manufacturing through the Made in China 2025 campaign, are the true targets of the US trade war, rather than trade imbalances. Photo: AFP
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Aidan Yao

Aidan Yao

Aidan Yao is senior emerging Asia economist at AXA Investment Managers. Prior to joining AXA IM, he was a senior financial market analyst at the Hong Kong Monetary Authority for two years. He started his career at the Reserve Bank of New Zealand in 2007, serving as an economist and later senior financial market analyst until late 2011. He holds a master degree in finance (2006) and a bachelor degree in economics and finance (2005) from the University of Otago (NZ). He is also a chartered financial analyst.